Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2017 | Feb. 16, 2018 | Jul. 01, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SAM | ||
Entity Registrant Name | BOSTON BEER CO INC | ||
Entity Central Index Key | 949,870 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,163,800,000 | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 8,814,850 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,017,983 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 65,637 | $ 91,035 |
Accounts receivable | 33,749 | 36,694 |
Inventories | 50,651 | 52,499 |
Prepaid expenses and other current assets | 10,695 | 8,731 |
Income tax receivable | 7,616 | 4,928 |
Total current assets | 168,348 | 193,887 |
Property, plant and equipment, net | 384,280 | 408,411 |
Other assets | 13,313 | 9,965 |
Goodwill | 3,683 | 3,683 |
Total assets | 569,624 | 615,946 |
Current Liabilities: | ||
Accounts payable | 38,141 | 40,585 |
Accrued expenses and other current liabilities | 63,617 | 60,934 |
Total current liabilities | 101,758 | 101,519 |
Deferred income taxes | 34,819 | 57,261 |
Other liabilities | 9,524 | 10,584 |
Total liabilities | 146,101 | 169,364 |
Commitments and Contingencies (See Note J) | ||
Stockholders' Equity: | ||
Additional paid-in capital | 372,590 | 349,913 |
Accumulated other comprehensive loss, net of tax | (1,288) | (1,103) |
Retained earnings | 52,105 | 97,648 |
Total stockholders' equity | 423,523 | 446,582 |
Total liabilities and stockholders' equity | 569,624 | 615,946 |
Common Class A | ||
Stockholders' Equity: | ||
Common Stock | 86 | 92 |
Common Class B | ||
Stockholders' Equity: | ||
Common Stock | $ 30 | $ 32 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 2017 | Dec. 31, 2016 |
Common Class A | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 22,700,000 | 22,700,000 |
Common Stock, shares issued | 8,603,152 | 9,170,956 |
Common Stock, shares outstanding | 8,603,152 | 9,170,956 |
Common Class B | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 4,200,000 | 4,200,000 |
Common Stock, shares issued | 3,017,983 | 3,197,355 |
Common Stock, shares outstanding | 3,017,983 | 3,197,355 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | ||
Revenue | $ 921,736 | $ 968,994 | $ 1,024,040 | |
Less excise taxes | 58,744 | 62,548 | 64,106 | |
Net revenue | 862,992 | 906,446 | 959,934 | |
Cost of goods sold | 413,091 | 446,776 | 458,317 | |
Gross profit | 449,901 | 459,670 | 501,617 | |
Advertising, promotional and selling expenses | 258,649 | 244,213 | 273,629 | |
General and administrative expenses | 73,126 | 78,033 | 71,556 | |
Impairment (gain on sale) of assets, net | 2,451 | (235) | 258 | |
Total operating expenses | 334,226 | 322,011 | 345,443 | |
Operating income | 115,675 | 137,659 | 156,174 | |
Interest income | 549 | 168 | 56 | |
Other expense, net | (82) | (706) | (1,220) | |
Total other income (expense), net | 467 | (538) | (1,164) | |
Income before provision for income tax | 116,142 | 137,121 | 155,010 | |
Provision for income taxes | 17,093 | 49,772 | 56,596 | |
Net income | $ 99,049 | $ 87,349 | $ 98,414 | |
Net income per common share - basic | $ 8.18 | $ 6.93 | $ 7.46 | |
Net income per common share - diluted | $ 8.09 | $ 6.79 | $ 7.25 | |
Weighted-average number of common shares - diluted | 12,180 | 12,796 | 13,520 | |
Net income | $ 99,049 | $ 87,349 | $ 98,414 | |
Other comprehensive (loss) income, net of tax: | ||||
Currency translation adjustment | 17 | (99) | (22) | |
Defined benefit plans liability adjustment | (202) | (53) | 204 | |
Total other comprehensive (loss) income, net of tax: | (185) | (152) | 182 | |
Comprehensive income | $ 98,864 | $ 87,197 | $ 98,596 | |
Common Class A | ||||
Net income per common share - basic | $ 8.18 | $ 6.93 | $ 7.46 | |
Weighted-average number of common shares - basic | 8,933 | 9,189 | 9,619 | |
Common Class B | ||||
Net income per common share - basic | $ 8.18 | $ 6.93 | $ 7.46 | |
Weighted-average number of common shares - basic | [1] | 3,102 | 3,344 | 3,504 |
[1] | Change in Class B Common Stock resulted from the conversion of 125,000 shares to Class A Common Stock on November 4, 2016, 45,000 shares to Class A Common Stock on November 30, 2016, 100,000 shares to Class A Common Stock on March 7, 2017, and 79,000 shares to Class A Common Stock on October 31, 2017 with the ending number of shares reflecting the weighted average for the period. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common StockCommon Class A | Common StockCommon Class B | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income, net of tax | Retained Earnings |
Balance (in shares) at Dec. 27, 2014 | 9,452,000 | 3,617,000 | ||||
Balance at Dec. 27, 2014 | $ 436,140 | $ 95 | $ 36 | $ 224,909 | $ (1,133) | $ 212,233 |
Net income | 98,414 | 98,414 | ||||
Stock options exercised and restricted shares activities, including tax benefit (in shares) | 303,000 | |||||
Stock options exercised and restricted shares activities, including tax benefit | 58,525 | $ 3 | 58,522 | |||
Stock-based compensation expense | $ 6,665 | 6,665 | ||||
Repurchase of Class A Common Stock (in shares) | (616,747) | (616,000) | ||||
Repurchase of Class A Common Stock | $ (138,705) | $ (6) | (138,699) | |||
Conversion from Class B to Class A (in shares) | 250,000 | (250,000) | ||||
Conversion from Class B to Class A | $ 2 | $ (2) | ||||
Defined benefit plans liability adjustment, net of tax | 204 | 204 | ||||
Currency translation adjustment | (22) | (22) | ||||
Balance (in shares) at Dec. 26, 2015 | 9,389,000 | 3,367,000 | ||||
Balance at Dec. 26, 2015 | 461,221 | $ 94 | $ 34 | 290,096 | (951) | 171,948 |
Net income | 87,349 | 87,349 | ||||
Stock options exercised and restricted shares activities, including tax benefit (in shares) | 557,000 | |||||
Stock options exercised and restricted shares activities, including tax benefit | 53,674 | $ 5 | 53,669 | |||
Stock-based compensation expense | $ 6,148 | 6,148 | ||||
Repurchase of Class A Common Stock (in shares) | (944,876) | (945,000) | ||||
Repurchase of Class A Common Stock | $ (161,658) | $ (9) | (161,649) | |||
Conversion from Class B to Class A (in shares) | 170,000 | (170,000) | ||||
Conversion from Class B to Class A | $ 2 | $ (2) | ||||
Defined benefit plans liability adjustment, net of tax | (53) | (53) | ||||
Currency translation adjustment | (99) | (99) | ||||
Balance (in shares) at Dec. 31, 2016 | 9,171,000 | 3,197,000 | ||||
Balance at Dec. 31, 2016 | 446,582 | $ 92 | $ 32 | 349,913 | (1,103) | 97,648 |
Net income | $ 99,049 | 99,049 | ||||
Stock options exercised and restricted shares activities, including tax benefit (in shares) | 194,401 | 217,000 | ||||
Stock options exercised and restricted shares activities, including tax benefit | $ 16,363 | $ 2 | 16,361 | |||
Stock-based compensation expense | $ 6,316 | 6,316 | ||||
Repurchase of Class A Common Stock (in shares) | (963,790) | (964,000) | ||||
Repurchase of Class A Common Stock | $ (144,602) | $ (10) | (144,592) | |||
Conversion from Class B to Class A (in shares) | 179,000 | (179,000) | ||||
Conversion from Class B to Class A | $ 2 | $ (2) | ||||
Defined benefit plans liability adjustment, net of tax | (202) | (202) | ||||
Currency translation adjustment | 17 | 17 | ||||
Balance (in shares) at Dec. 30, 2017 | 8,603,000 | 3,018,000 | ||||
Balance at Dec. 30, 2017 | $ 423,523 | $ 86 | $ 30 | $ 372,590 | $ (1,288) | $ 52,105 |
Consolidated Statements of Sto6
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Stock options exercised and restricted shares activities, tax benefit | $ 4,400 | $ 12,524 | $ 15,350 |
Defined benefit plans liability adjustment, tax | $ 68 | $ 32 | $ (142) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Cash flows provided by operating activities: | |||
Net income | $ 99,049 | $ 87,349 | $ 98,414 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 51,256 | 49,557 | 42,885 |
Impairment of assets | 2,451 | 716 | 258 |
Loss on disposal of property, plant and equipment | 764 | 616 | 515 |
Gain on sale of property, plant and equipment | (951) | ||
Bad debt (recovery) expense | (244) | 165 | |
Stock-based compensation expense | 6,316 | 6,148 | 6,665 |
Excess tax benefit from stock-based compensation arrangements | (12,524) | (15,350) | |
Deferred income taxes | (22,442) | 8,243 | 6,986 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,945 | 2,534 | (2,289) |
Inventories | (1,741) | 445 | (5,155) |
Prepaid expenses, income tax receivable and other assets | (4,511) | 14,936 | 11,858 |
Accounts payable | 245 | (1,811) | 5,985 |
Accrued expenses and taxes and other current liabilities | 2,671 | 5,479 | 9,014 |
Other liabilities | (1,021) | (6,304) | 8,732 |
Net cash provided by operating activities | 135,982 | 154,189 | 168,683 |
Cash flows used in investing activities: | |||
Purchases of property, plant and equipment | (32,987) | (49,913) | (74,187) |
Proceeds from sale of property, plant and equipment | 25 | 3,855 | |
Cash paid for intangible assets | (100) | ||
Change in restricted cash | 33 | 40 | 57 |
Net cash used in investing activities | (32,929) | (46,018) | (74,230) |
Cash flows used in financing activities: | |||
Repurchase of Class A Common Stock | (144,602) | (164,658) | (135,705) |
Proceeds from exercise of stock options | 15,415 | 40,127 | 42,339 |
Cash paid on note payable and capital lease | (60) | (58) | (54) |
Excess tax benefit from stock-based compensation arrangements | 12,524 | 15,350 | |
Net proceeds from sale of investment shares | 796 | 736 | 1,408 |
Net cash used in financing activities | (128,451) | (111,329) | (76,662) |
Change in cash and cash equivalents | (25,398) | (3,158) | 17,791 |
Cash and cash equivalents at beginning of year | 91,035 | 94,193 | 76,402 |
Cash and cash equivalents at end of period | 65,637 | 91,035 | 94,193 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 43,006 | 30,978 | 45,078 |
Income taxes refunded | 12,064 | 17,252 | |
(Decrease) Increase in accounts payable for repurchase of Class A Common Stock | (3,000) | 3,000 | |
(Decrease) Increase in accounts payable for purchase of property, plant and equipment | $ (2,689) | $ 2,678 | $ (1,843) |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 30, 2017 | |
Organization and Basis of Presentation | A. Organization and Basis of Presentation The Boston Beer Company, Inc. and certain subsidiaries (the “Company”) are engaged in the business of selling alcohol beverages throughout the United States and in selected international markets, under the trade names “The Boston Beer Company,” “Twisted Tea Brewing Company,” “Angry Orchard Cider Company,” “Hard Seltzer Beverage Company,” Traveler Beer Co. ® ® ® ® |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2017 | |
Summary of Significant Accounting Policies | B. Summary of Significant Accounting Policies Fiscal Year The Company’s fiscal year is a fifty-two fifty-two fifty-two Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents at December 30, 2017 and December 31, 2016 included cash on-hand The Company has restricted cash associated with a term note agreement with Bank of America that was required by the Commonwealth of Pennsylvania to fund economic development at the Company’s Pennsylvania Brewery. The restricted cash subject to this agreement amounted to $340,000 and $400,000 at December 30, 2017 and December 31, 2016, respectively, and is included in other assets on the Company’s Consolidated Balance Sheets. Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of December 30, 2017 and December 31, 2016 are adequate, but actual write-offs could exceed the recorded allowance. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and trade receivables. The Company places its cash equivalents with high credit quality financial institutions. As of December 30, 2017, the Company’s cash and cash equivalents were invested in investment-grade, highly-liquid U.S. government agency corporate money market accounts. The Company sells primarily to a network of independent wholesalers in the United States and to a network of foreign wholesalers, importers or other agencies (collectively referred to as “Distributors”). In 2017, 2016 and 2015, sales to foreign Distributors were approximately 4% of total sales. Receivables arising from these sales are not collateralized; however, credit risk is minimized as a result of the large and diverse nature of the Company’s customer base. There were no individual customer accounts receivable balances outstanding at December 30, 2017 and December 31, 2016 that were in excess of 10% of the gross accounts receivable balance on those dates. No individual customers represented more than 10% of the Company’s revenues during fiscal years 2017, 2016, and 2015. Financial Instruments and Fair Value of Financial Instruments The Company’s primary financial instruments consisted of cash equivalents, accounts receivable, accounts payable and accrued expenses at December 30, 2017 and December 31, 2016. The Company determines the fair value of its financial assets and liabilities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures Inventories and Provision for Excess or Expired Inventory Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of hops, malt, apple juice, other brewing materials and packaging, are stated at the lower of cost (first-in, first-out on-hand The provisions for excess or expired inventory are based on management’s estimates of forecasted usage of inventories on hand and under contract. Forecasting usage involves significant judgments regarding future demand for the Company’s various existing products and products under development as well as the potency and shelf-life of various ingredients. A significant change in the timing or level of demand for certain products as compared to forecasted amounts may result in recording additional provisions for excess or expired inventory in the future. Provisions for excess inventory are included in cost of goods sold and have historically been adequate to provide for losses on its inventory. Provision for excess or expired inventory included in cost of goods sold was $5.8 million, $4.5 million, and $4.0 million in fiscal years 2017, 2016, and 2015, respectively. Property, Plant and Equipment Property, plant, and equipment are stated at cost. Expenditures for repairs and maintenance are expensed as incurred. Major renewals and betterments that extend the life of the property are capitalized. Depreciation is computed using the straight-line method based upon the estimated useful lives of the underlying assets as follows: Kegs 5 years Computer software and equipment 2 to 5 years Office equipment and furniture 3 to 7 years Machinery and plant equipment 3 to 20 years, or the term of the production agreement, whichever is shorter Leasehold improvements Lesser of the remaining term of the lease or estimated useful life of the asset Building and building improvements 12 to 20 years, or the remaining useful life of the building, whichever is shorter The carrying value of property, plant and equipment, net of accumulated depreciation, at December 30, 2017 was $384.2 million. For purposes of determining whether there are any impairment losses, as further discussed below, management has historically examined the carrying value of the Company’s identifiable long-lived assets, including their useful lives, semi-annually, or more frequently when indicators of impairment are present. Evaluations of whether indicators of impairment exist involve judgments regarding the current and future business environment and the length of time the Company intends to use the asset. If an impairment loss is identified based on the fair value of the asset, as compared to the carrying value of the asset, such loss would be charged to expense in the period the impairment is identified. Furthermore, if the review of the carrying values of the long-lived assets indicates impairment of such assets, the Company may determine that shorter estimated useful lives are more appropriate. In that event, the Company will be required to record additional depreciation in future periods, which will reduce earnings. Estimating the amount of impairment, if any, requires significant judgments including identification of potential impairments, market comparison to similar assets, estimated cash flows to be generated by the asset, discount rates, and the remaining useful life of the asset. Impairment of assets included in operating expenses was $2.5 million, $0.7 million and $0.3 million in fiscal years 2017, 2016 and 2015, respectively. Factors generally considered important which could trigger an impairment review on the carrying value of long-lived assets include the following: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in the manner of use of acquired assets or the strategy for the Company’s overall business; (3) underutilization of assets; and (4) discontinuance of products by the Company or its customers. The Company believes that the carrying value of its long-lived assets was realizable as of December 30, 2017 and December 31, 2016. Segment Reporting Previously, the Company consisted of two operating segments that each produced and sold alcohol beverages. The first being the Boston Beer Company operating segment comprised of the Company’s Samuel Adams, Twisted Tea, Angry Orchard and Truly Spiked & Sparkling brands and the second being the A&S Brewing operating segment comprised of The Traveler Beer Company, Coney Island Brewing Company, Angel City Brewing Company and Concrete Beach Brewing Company. In 2016, sales from A&S brands were less than 5% of net revenues and in 2015, sales from A&S brands were less than 7% of net revenues. In 2017, the Company consolidated the A&S Brewing operating segment into the Boston Beer Company operating segment. The rationale for this change in operating segments was mainly driven by the departure of Alan Newman, Head of A&S Brewing, who left the Company at the end of 2016. Upon Mr. Newman’s departure, the A&S Brewing brands reporting structure changed to be in line with the Company’s Samuel Adams, Twisted Tea, Angry Orchard and Truly Spiked & Sparkling brands. Additionally, all brands sell predominantly low alcohol beverages, which are sold to the same types of customers in similar size quantities, at similar price points and through substantially the same channels of distribution. These beverages are manufactured using similar production processes, have comparable alcohol content and generally fall under the same regulatory environment. Goodwill and Intangible Assets The Company does not amortize goodwill and intangible assets, but evaluates the recoverability by comparing the carrying value and the fair value annually at the end of the fiscal month of August, or more frequently when indicators of impairment are present. The Company has concluded that its goodwill and intangible assets were not impaired as of December 30, 2017 and December 31, 2016. As of December 30, 2017 and December 31, 2016, goodwill amounted to $3.7 million. As of December 30, 2017 and December 31, 2016, intangible assets amounted to $2.0 million and were included in other assets in the accompanying consolidated balance sheets. Refundable Deposits on Kegs and Pallets The Company distributes its draft beer in kegs and packaged beer primarily in glass bottles and cans and such kegs, bottles and cans are shipped on pallets to Distributors. Most kegs and pallets are owned by the Company. Kegs are reflected in the Company’s balance sheets at cost and are depreciated over the estimated useful life of the keg, while pallets are expensed upon purchase. Upon shipment of beer to Distributors, the Company collects a refundable deposit on the kegs and pallets, which is included in current liabilities in the Company’s balance sheets. Upon return of the kegs and pallets to the Company, the deposit is refunded to the Distributor. The Company has experienced some loss of kegs and pallets and anticipates that some loss will occur in future periods due to the significant volume of kegs and pallets handled by each Distributor and retailer, the homogeneous nature of kegs and pallets owned by most brewers and the relatively small deposit collected for each keg when compared with its market value. The Company believes that this is an industry-wide issue and that the Company’s loss experience is not atypical. The Company believes that the loss of kegs and pallets, after considering the forfeiture of related deposits, has not been material to the financial statements. The Company uses internal records, records maintained by Distributors, records maintained by other third party vendors and historical information to estimate the physical count of kegs and pallets held by Distributors. These estimates affect the amount recorded as property, plant and equipment and current liabilities as of the date of the financial statements. The actual liability for refundable deposits could differ from these estimates. For the year ended December 30, 2017, the Company decreased its liability for refundable deposits, gross property, plant and equipment and related accumulated depreciation by $1.0 million, $1.0 million and $1.0 million, respectively. For the year ended December 31, 2016, the Company decreased its liability for refundable deposits, gross property, plant and equipment and related accumulated depreciation by $1.1 million, $1.4 million and $1.4 million, respectively. As of December 30, 2017, and December 31, 2016, the Company’s balance sheet includes $12.9 million and $14.3 million, respectively, in refundable deposits on kegs and pallets and $5.9 million and $12.0 million, respectively, in kegs, net of accumulated depreciation. Income Taxes Income tax expense was $17.1 million, $49.8 million and $56.6 million in fiscal years 2017, 2016 and 2015, respectively. The Company provides for deferred taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. This results in differences between the book and tax basis of the Company’s assets, liabilities and carry-forwards such as tax credits. In estimating future tax consequences, all expected future events, other than enactment of changes in the tax laws or rates, are generally considered. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different state tax jurisdictions. The Company is periodically reviewed by tax authorities regarding the amount of taxes due. These reviews include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. The Company records estimated reserves for exposures associated with positions that it takes on its income tax returns that do not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes Revenue Recognition and Classification of Customer Programs and Incentives The Company recognizes revenue on product sales at the time when the product is shipped and the following conditions are met: persuasive evidence of an arrangement exists, title has passed to the customer according to the shipping terms, the price is fixed and determinable, and collection of the sales proceeds is reasonably assured. If the conditions for revenue recognition are not met, the Company defers the revenue until all conditions are met. As of December 30, 2017 and December 31, 2016, the Company has deferred $5.5 million and $5.4 million, in revenue related to product shipped prior to these dates. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. The Company is committed to maintaining the freshness of the product in the market. In certain circumstances and with the Company’s approval, the Company accepts and destroys stale beer that is returned by Distributors. The Company generally credits approximately fifty percent of the distributor’s cost of the beer that has passed its expiration date for freshness when it is returned to the Company or destroyed. The Company reduces revenue and establishes an accrual based upon both historical returns, which is applied to an estimated lag time for receipt of product, and knowledge of specific return transactions. Estimating this reserve involves significant judgments and estimates, including comparability of historical return trends to future trends, lag time from date of sale to date of return, and product mix of returns. Stale beer expense is reflected in the accompanying financial statements as a reduction of revenue. Historically, the cost of actual stale beer returns has been in line with established reserves, however, the cost could differ materially from the estimated reserve which would impact revenue. As of December 30, 2017 and December 31, 2016, the stale beer reserve was $3.0 million and $5.2 million, respectively. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Customer programs and incentives, which include customer promotional discount programs, customer incentives and other payments, are a common practice in the alcohol beverage industry. The Company makes these payments to customers and incurs these costs to promote sales of products and to maintain competitive pricing. Amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising, promotional and selling expenses in accordance with ASC Topic 605-50, Revenue Recognition- Customer Payments and Incentives, Customer promotional discount programs are entered into with Distributors for certain periods of time. Amounts paid to Distributors in connection with these programs in fiscal years 2017, 2016 and 2015 were $30.2 million, $33.2 million and $33.2 million, respectively. The reimbursements for discounts to Distributors are recorded as reductions to net revenue. The agreed-upon discount rates are applied to certain Distributors’ sales to retailers, based on volume metrics, in order to determine the total discounted amount. The computation of the discount allowance requires that management make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. Actual promotional discounts owed and paid have historically been in line with allowances recorded by the Company, however, the amounts could differ from the estimated allowance. Customer incentives and other payments are made primarily to Distributors based upon performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to point-of-sale In connection with its preparation of financial statements and other financial reporting, management is required to make certain estimates and assumptions regarding the amount, timing and classification of expenditures resulting from these activities. Actual expenditures incurred could differ from management’s estimates and assumptions. Excise Taxes The Company is responsible for compliance with the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Treasury Department (the “TTB”) regulations which includes making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. The Company is currently under audit for the years 2015, 2016 and 2017. Individual states also impose excise taxes on alcohol beverages in varying amounts. The Company calculates its excise tax expense based upon units shipped and on its understanding of the applicable excise tax laws. Cost of Goods Sold The following expenses are included in cost of goods sold: raw material costs, packaging costs, costs and income related to deposit activity, purchasing and receiving costs, manufacturing labor and overhead, brewing and processing costs, inspection costs relating to quality control, inbound freight charges, depreciation expense related to manufacturing equipment and warehousing costs, which include rent, labor and overhead costs. Shipping Costs Costs incurred for the shipping of products to customers are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income. The Company incurred shipping costs of $45.3 million, $49.2 million, and $62.2 million in fiscal years 2017, 2016, and 2015, respectively. Advertising and Sales Promotions The following expenses are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income: media advertising costs, sales and marketing expenses, salary and benefit expenses and meals, travel and entertainment expenses for the sales, brand and sales support workforce, promotional activity expenses, shipping costs related to shipments of finished goods from manufacturing locations to distributor locations and point-of-sale The Company conducts certain advertising and promotional activities in its Distributors’ markets and the Distributors make contributions to the Company for such efforts. Reimbursements from Distributors for advertising and promotional activities are recorded as reductions to advertising, promotional and selling expenses. General and Administrative Expenses The following expenses are included in general and administrative expenses in the accompanying consolidated statements of comprehensive income: general and administrative salary and benefit expenses, insurance costs, professional service fees, rent and utility expenses, meals, travel and entertainment expenses for general and administrative employees, and other general and administrative overhead costs. Stock-Based Compensation The Company accounts for share-based awards in accordance with ASC Topic 718, Compensation — Stock Compensation As permitted by ASC 718, the Company elected to use a lattice model, such as the trinomial option-pricing model, to estimate the fair values of stock options, with the exception of the 2008 and 2016 stock option grants to the Company’s Chief Executive Officer, which is considered to be a market-based award and was valued utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes fair value based on the most likely outcome. All option-pricing models require the input of subjective assumptions. These assumptions include the estimated volatility of the Company’s common stock price over the expected term, the expected dividend rate, the estimated post-vesting forfeiture rate, the risk-free interest rate and expected exercise behavior. See Note L for further discussion of the application of the option-pricing models. In addition, an estimated pre-vesting Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted-average common shares and potentially dilutive securities outstanding during the period using the treasury stock method or the two-class Accounting Pronouncements Recently Adopted In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting 2016-09 2016-09, 2016-09, fifty-two In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes 2015-17 Accounting Pronouncements Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09 2014-09 2014-09 No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date 2015-14 2014-09 2014-09 2014-09 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 2016-02 |
Inventories
Inventories | 12 Months Ended |
Dec. 30, 2017 | |
Inventories | C. Inventories Inventories consisted of the following: December 30, December 31, (in thousands) Current inventory: Raw materials $ 33,086 $ 35,314 Work in process 6,826 8,131 Finished goods 10,739 9,054 Total current inventory 50,651 52,499 Long term inventory 9,905 6,316 Total inventory $ 60,556 $ 58,815 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 30, 2017 | |
Prepaid Expenses and Other Current Assets | D. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 30, December 31, 2017 2016 (in thousands) Prepaid advertising, promotional and selling $ 3,328 $ 119 Prepaid malt and barley 1,819 1,644 Excise and other tax receivables 1,651 1,637 Supplier rebates 1,464 1,158 Prepaid insurance 1,055 1,144 Insurance cash surrender value — 1,254 Other 1,378 1,775 $ 10,695 $ 8,731 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 30, 2017 | |
Property, Plant and Equipment | E. Property, Plant and Equipment Property, plant and equipment consisted of the following: December 30, December 31, 2017 2016 (in thousands) Machinery and plant equipment $ 438,925 $ 420,486 Kegs 69,049 70,024 Land 22,295 22,295 Building and building improvements 112,912 112,508 Office equipment and furniture 24,307 22,412 Leasehold improvements 16,660 14,147 684,148 661,872 Less accumulated depreciation (299,868 ) (253,461 ) $ 384,280 $ 408,411 The Company recorded depreciation expense related to these assets of $51.2 million, $49.3 million, and $43.4 million, in fiscal years 2017, 2016, and 2015, respectively. Impairment of Assets The Company evaluates its assets for impairment when events indicate that an asset or asset group may have suffered impairment. During 2017, 2016, and 2015, the Company recorded impairment charges of $2.5 million, $0.7 million, and $0.3 million, respectively. Gain on Sale of Assets During 2016, the Company recognized a $1.0 million gain on the sale of land owned in Freetown, Massachusetts. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 30, 2017 | |
Goodwill | F. Goodwill Goodwill represents the excess of the purchase price of the Company-owned breweries over the fair value of the net assets acquired upon the completion of the acquisitions. As of December 30, 2017 and December 31, 2016, goodwill amounted to $3.7 million. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 30, 2017 | |
Accrued Expenses and Other Current Liabilities | G. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 30, December 31, 2017 2016 (in thousands) Employee wages, benefits and reimbursements $ 16,275 $ 14,116 Accrued deposits 14,224 15,814 Advertising, promotional and selling expenses 13,605 8,562 Deferred revenue 5,472 5,381 Accrued stale beer 3,023 5,226 Accrued excise taxes 2,015 2,255 Accrued sales and use tax 1,873 2,437 Accrued freight 1,518 1,402 Other accrued liabilities 5,612 5,741 $ 63,617 $ 60,934 |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Dec. 30, 2017 | |
Revolving Line of Credit | H. Revolving Line of Credit The Company has a credit facility in place that provides for a $150.0 million revolving line of credit which has a term not scheduled to expire until March 31, 2019. The Company may elect an interest rate for borrowings under the credit facility based on either (i) the Alternative Prime Rate (4.5% at December 30, 2017) or (ii) the applicable LIBOR rate (1.49% at December 30, 2017) plus 0.45%. The Company incurs an annual commitment fee of 0.15% on the unused portion of the facility and is obligated to meet certain financial covenants, which are measured using earnings before interest, tax, depreciation and amortization (“EBITDA”) based ratios. The Company’s EBITDA to interest expense ratio was 12,639 as of December 30, 2017, compared to a minimum allowable ratio of 2.00 and the Company’s total funded debt to EBITDA ratio was 0.00 as of December 30, 2017, compared to a maximum allowable ratio of 2.50. The Company was in compliance with all financial covenants as of December 30, 2017 and December 31, 2016. There were no borrowings outstanding under the credit facility as of December 30, 2017 and December 30, 2016. There are also certain restrictive covenants set forth in the credit agreement. Pursuant to the negative covenants, the Company has agreed that it will not: enter into any indebtedness or guarantees other than those specified by the lender, enter into any sale and leaseback transactions, merge, consolidate, or dispose of significant assets without the lender’s prior written consent, make or maintain any investments other than those permitted in the credit agreement, or enter into any transactions with affiliates outside of the ordinary course of business. In addition, the credit agreement requires the Company to obtain prior written consent from the lender on distributions on account of, or in repurchase, retirement or purchase of its capital stock or other equity interests with the exception of the following: (a) distributions of capital stock from subsidiaries to The Boston Beer Company, Inc. and Boston Beer Corporation (a subsidiary of The Boston Beer Company, Inc.), (b) repurchase from former employees of non-vested |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2017 | |
Income Taxes | I. Income Taxes Significant components of the provision for income taxes are as follows: 2017 2016 2015 (in thousands) Current: Federal $ 34,255 $ 35,390 $ 42,391 State 5,225 6,108 7,403 Total current 39,480 41,498 49,794 Deferred: Federal (22,489 ) 7,666 6,279 State 102 608 523 Total deferred (22,387 ) 8,274 6,802 Total provision for income taxes $ 17,093 $ 49,772 $ 56,596 The Company’s reconciliations to statutory rates are as follows: 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 3.6 3.6 3.4 Deduction relating to U.S. production activities (3.2 ) (2.6 ) (2.7 ) Deduction relating to excess stock benefits (3.7 ) — — Change relating to enacted Tax Cuts and Jobs Act (17.5 ) — — Change in valuation allowance — (0.3 ) — Other 0.5 0.6 0.8 14.7 % 36.3 % 36.5 % Significant components of the Company’s deferred tax assets and liabilities are as follows at: December 30, December 31, 2017 2016 (in thousands) Deferred tax assets: Accrued expenses $ 2,484 $ 6,488 Stock-based compensation expense 4,175 5,929 Inventory 435 1,117 Other 2,598 4,097 Total deferred tax assets 9,692 17,631 Valuation allowance (439 ) (669 ) Total deferred tax assets net of valuation allowance 9,253 16,962 Deferred tax liabilities: Property, plant and equipment (42,076 ) (72,140 ) Prepaid expenses (1,341 ) (1,204 ) Goodwill (655 ) (879 ) Total deferred tax liabilities (44,072 ) (74,223 ) Net deferred tax liabilities $ (34,819 ) $ (57,261 ) Reduction of US federal corporate tax rate: The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. Interest and penalties included in the provision for income taxes amounted to $0.0 million, $0.0 million, and $0.1 million for fiscal years 2017, 2016, and 2015, respectively. Accrued interest and penalties amounted to $0.0 million and $0.3 million at December 30, 2017 and December 31, 2016, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 (in thousands) Balance at beginning of year $ 589 $ 486 Increases related to current year tax positions 64 80 (Decreases) Increases related to prior year tax positions (259 ) 76 Decreases related to settlements (62 ) (50 ) Decreases related to lapse of statute of limitations (40 ) (3 ) Balance at end of year $ 292 $ 589 Included in the balance of unrecognized tax benefits at December 30, 2017 and December 31, 2016 are potential net benefits of $0.3 million and $0.5 million, respectively, that would favorably impact the effective tax rate if recognized. Unrecognized tax benefits are included in accrued expenses in the accompanying consolidated balance sheets and adjusted in the period in which new information about a tax position becomes available or the final outcome differs from the amount recorded. In September 2017, the Internal Revenue Service (“IRS”) commenced an examination of the Company’s 2015 consolidated corporate income tax return. The examination was still in process as of December 30, 2017. As of December 30, 2017, the Company’s 2014 and 2016 federal income tax returns remain subject to examination by IRS. The Company’s state income tax returns remain subject to examination for three or four years depending on the state’s statute of limitations. The Company is being audited by one state as of December 30, 2017. In addition, the Company is generally obligated to report changes in taxable income arising from federal income tax audits. It is reasonably possible that the Company’s unrecognized tax benefits may increase or decrease in 2018 if there is a completion of certain income tax audits; however, the Company cannot estimate the range of such possible changes. The Company does not expect that any potential changes would have a material impact on the Company’s financial position, results of operations or cash flows. As of December 30, 2017, the Company’s deferred tax assets include a capital loss carryforward. The capital loss carryforward, totaling $1.7 million as of December 30, 2017, which if unused, will expire in year 2019. For the year ended December 30, 2017, the Company recorded a net valuation allowance release of $0.3 million due to a decrease in the deferred tax asset for capital loss carryforwards. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2017 | |
Commitments and Contingencies | J. Commitments and Contingencies Contractual Obligations As of December 30, 2017, projected cash outflows under non-cancelable Payments Due by Period Total 2018 2019 2020 2021 2022 Thereafter (in thousands) Brand support $ 71,822 $ 41,647 $ 4,657 $ 4,383 $ 4,335 $ 4,200 $ 12,600 Hops, barley and wheat 62,197 26,979 13,927 4,615 5,386 3,964 7,326 Apples and other ingredients 33,716 33,716 — — — — — Glass bottles 13,860 13,860 — — — — — Equipment and machinery 13,100 13,100 — — — — — Operating leases 12,764 3,119 2,844 2,515 2,571 1,715 — Other 8,979 4,456 2,541 1,178 333 333 138 Total contractual obligations $ 216,438 $ 136,877 $ 23,969 $ 12,691 $ 12,625 $ 10,212 $ 20,064 The Company utilizes several varieties of hops in the production of its products. To ensure adequate supplies of these varieties, the Company enters into advance multi-year purchase commitments based on forecasted future hop requirements, among other factors. These purchase commitments extend through crop year 2025 and specify both the quantities and prices, denominated in U.S. Dollar, Euros, New Zealand Dollars and British Pounds, to which the Company is committed. Hops purchase commitments outstanding at December 30, 2017 totaled $48.5 million, based on the exchange rates on that date. The Company does not use forward currency exchange contracts and intends to purchase future hops using the exchange rate at the time of purchase. These contracts were deemed necessary in order to bring hop inventory levels and purchase commitments into balance with the Company’s current brewing volume and hop usage forecasts. In addition, these contracts enable the Company to secure its position for future supply with hop vendors in the face of some competitive buying activity. Currently, the Company has entered into contracts for barley and wheat with two major suppliers. The contracts include crop year 2017 and cover the Company’s barley, wheat, and malt requirements for 2018. These purchase commitments outstanding at December 30, 2017 totaled $13.7 million. The Company sources some of its glass bottles needs pursuant to a Glass Bottle Supply Agreement with Anchor Glass Container Corporation (“Anchor”), under which Anchor is the supplier of certain glass bottles for the Company’s Cincinnati Brewery and its Pennsylvania Brewery. This agreement also establishes the terms on which Anchor may supply glass bottles to other breweries where the Company brews its beers. Under the agreement with Anchor, the Company has minimum and maximum purchase commitments that are based on Company-provided production estimates which, under normal business conditions, are expected to be fulfilled. Minimum purchase commitments under this agreement, assuming the supplier is unable to replace lost production capacity cancelled by the Company, as of December 30, 2017 totaled $13.9 million. The Company’s accounting policy for inventory and purchase commitments is to recognize a loss by establishing a reserve to the extent inventory levels and commitments exceed forecasted needs. The computation of the excess inventory requires management to make certain assumptions regarding future sales growth, product mix, cancellation costs and supply, among others. Actual results may differ materially from management’s estimates. The Company continues to manage inventory levels and purchase commitments in an effort to maximize utilization. However, changes in management’s assumptions regarding future sales growth, product mix and hops market conditions could result in future material losses. The Company has various operating lease agreements in place for facilities and equipment as of December 30, 2017. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs, and vary by lease. These lease obligations expire at various dates through 2022. Aggregate rent expense was $3.4 million, $3.8 million, and $3.4 million in fiscal years 2017, 2016, and 2015, respectively. For the fiscal year ended December 30, 2017, the Company brewed over 90% of its volume at Company-owned breweries. In the normal course of its business, the Company has historically entered into various production arrangements with other brewing companies. Pursuant to these arrangements, the Company purchases the liquid produced by those brewing companies, including the raw materials that are used in the liquid, at the time such liquid goes into fermentation. The Company is required to repurchase all unused raw materials purchased by the brewing company specifically for the Company’s beers at the brewing company’s cost upon termination of the production arrangement. The Company is also obligated to meet annual volume requirements in conjunction with certain production arrangements, which are not material to the Company’s operations. The Company’s arrangements with other brewing companies require it to periodically purchase equipment in support of brewery operations. As of December 30, 2017, there were no significant equipment purchase requirements outstanding under existing contracts. Changes to the Company’s brewing strategy or existing production arrangements, new production relationships or the introduction of new products in the future may require the Company to purchase equipment to support the contract breweries’ operations. Litigation The Company is currently not a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition or the results of its operations. |
Fair Value Measures
Fair Value Measures | 12 Months Ended |
Dec. 30, 2017 | |
Fair Value Measures | K. Fair Value Measures The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). • Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. • Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. The Company’s money market funds are measured at fair value on a recurring basis (at least annually) and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The money market funds are invested substantially in United States Treasury and government securities. The Company does not adjust the quoted market price for such financial instruments. Cash, receivables and payables are carried at their cost, which approximates fair value, because of their short-term nature. At December 30, 2017 and December 31, 2016, the Company had money market funds with a “Triple A” rated money market fund. The Company considers the “Triple A” rated money market fund to be a large, highly-rated investment-grade institution. As of December 30, 2017, and December 31, 2016, the Company’s cash and cash equivalents balance was $65.6 million and $91.0 million, respectively, including money market funds amounting to $63.8 million and $90.0 million, respectively. |
Common Stock and Share-Based Co
Common Stock and Share-Based Compensation | 12 Months Ended |
Dec. 30, 2017 | |
Common Stock and Share-Based Compensation | L. Common Stock and Share-Based Compensation Class A Common Stock The Class A Common Stock has no voting rights, except (1) as required by law, (2) for the election of Class A Directors, and (3) that the approval of the holders of the Class A Common Stock is required for (a) certain future authorizations or issuances of additional securities which have rights senior to Class A Common Stock, (b) certain alterations of rights or terms of the Class A or Class B Common Stock as set forth in the Articles of Organization of the Company, (c) other amendments of the Articles of Organization of the Company, (d) certain mergers or consolidations with, or acquisitions of, other entities, and (e) sales or dispositions of any significant portion of the Company’s assets. Class B Common Stock The Class B Common Stock has full voting rights, including the right to (1) elect a majority of the members of the Company’s Board of Directors and (2) approve all (a) amendments to the Company’s Articles of Organization, (b) mergers or consolidations with, or acquisitions of, other entities, (c) sales or dispositions of any significant portion of the Company’s assets, and (d) equity-based and other executive compensation and other significant corporate matters. The Company’s Class B Common Stock is not listed for trading. Each share of Class B Common Stock is freely convertible into one share of Class A Common Stock, upon request of any Class B holder, and participates equally in earnings. All distributions with respect to the Company’s capital stock are restricted by the Company’s credit agreement, with the exception of distributions of capital stock from subsidiaries to The Boston Beer Company, Inc. and Boston Beer Corporation, repurchase from former employees of non-vested Employee Stock Compensation Plan The Company’s Employee Equity Incentive Plan (the “Equity Plan”) currently provides for the grant of discretionary options and restricted stock awards to employees, and provides for shares to be sold to employees of the Company at a discounted purchase price under its investment share program. The Equity Plan is administered by the Board of Directors of the Company, based on recommendations received from the Compensation Committee of the Board of Directors. The Compensation Committee consists of three independent directors. In determining the quantities and types of awards for grant, the Compensation Committee periodically reviews the objectives of the Company’s compensation system and takes into account the position and responsibilities of the employee being considered, the nature and value to the Company of his or her service and accomplishments, his or her present and potential contributions to the success of the Company, the value of the type of awards to the employee and such other factors as the Compensation Committee deems relevant. Stock options and related vesting requirements and terms are granted at the Board of Directors’ discretion, but generally vest ratably over five-year periods and, with respect to certain options granted to members of senior management, based on the Company’s performance. Generally, the maximum contractual term of stock options is ten years, although the Board of Directors may grant options that exceed the ten-year On January 1, 2018, the Company granted options to purchase an aggregate of 17,531 shares of the Company’s Class A Common Stock with a weighted average fair value of $82.69 per share, of which all shares relate to performance-based stock options. Restricted stock awards are also granted at the Board of Directors’ discretion. During fiscal 2017, 2016, and 2015, the Company granted 15,800 shares, 21,653 shares, and 6,092 shares, respectively, of restricted stock awards to certain senior managers and key employees, all of which are service-based and vest ratably over service periods of three to five years. The Equity Plan also has an investment share program which permits employees who have been with the Company for at least one year to purchase shares of Class A Common Stock at a discount from current market value of 0% to 40%, based on the employee’s tenure with the Company. Investment shares vest ratably over service periods of five years. Participants may pay for these shares either up front or through payroll deductions over an eleven-month period during the year of purchase. During fiscal 2017, 2016, and 2015, employees elected to purchase an aggregate of 10,146 investment shares, 9,199 investment shares, and 8,301 investment shares, respectively. On January 1, 2018, the Company granted 18,873 shares of restricted stock awards to certain senior managers and key employees of which all shares vest ratably over service periods of five years. On January 1, 2018, employees elected to purchase 9,214 shares under the investment share program. The Company has reserved 6.7 million shares of Class A Common Stock for issuance pursuant to the Equity Plan, of which 0.7 million shares were available for grant as of December 30, 2017. Shares reserved for issuance under cancelled employee stock options and forfeited restricted stock are returned to the reserve under the Equity Plan for future grants or purchases. The Company also purchases unvested investment shares from employees who have left the Company at the lesser of (i) the price paid for the shares when the employee acquired the shares or (ii) the fair market value of the shares as of the date next preceding the date on which the shares are called for redemption by the Company. These shares are also returned to the reserve under the Equity Plan for future grants or purchases. Non-Employee The Company has a stock option plan for non-employee “Non-Employee non-employee re-election non-employee non-employee The Company has reserved 0.6 million shares of Class A Common Stock for issuance pursuant to the Non-Employee non-employee Non-Employee Option Activity Information related to stock options under the Equity Plan and the Non-Employee Shares Weighted- Weighted-Average Aggregate Outstanding at December 31, 2016 1,348,233 $ 141.98 Granted 15,373 150.10 Forfeited (12,208 ) 160.47 Expired — — Exercised (194,401 ) 79.78 Outstanding at December 30, 2017 1,156,997 $ 158.53 6.28 $ 45,877 Exercisable at December 30, 2017 182,242 $ 98.78 3.58 $ 17,554 Vested and expected to vest at December 30, 2017 562,478 $ 115.47 4.49 $ 44,461 Of the total options outstanding at December 30, 2017, 35,885 shares were performance-based options for which the performance criteria had yet to be achieved and 574,507 shares were service-based options granted to the Chief Executive Officer that are not expected to vest as a result of the planned retirement in 2018. Stock Option Grants to Chief Executive Officer On January 1, 2016, the Company granted the Chief Executive Officer an option to purchase 574,507 shares of its Class A Common Stock, which vests over a five-year period, commencing on January 1, 2019, at the rate of 20% per year. The exercise price is determined by multiplying $201.91 by the aggregate percentage change in the DJ Wilshire 5000 Index from and after January 1, 2016 through the close of business on the trading date next preceding each date on which the option is exercised, plus an additional 1.5 percentage points per annum, prorated for partial years. The exercise price will not be less than $201.91 per share and the excess of the fair value of the Company’s Class A Common Stock cannot exceed $150 per share over the exercise price. At December 30, 2017 and December 31, 2016, the stock option remained unexercised as to 574,507 shares. If the stock option had been exercised on December 30, 2017, the exercise price would have been $272.45 per share. If the stock option had been exercised on December 31, 2016, the exercise price would have been $226.72 per share. The Company is accounting for this award as a market-based award which was valued utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes fair value based on the most likely outcome. Under the Monte Carlo Simulation pricing model, the Company calculated the weighted average fair value per share to be $39.16. As a result of the Chief Executive Officer’s planned retirement in 2018, the Company estimated a 100% forfeiture rate related to this grant. On January 1, 2008, the Company granted the Chief Executive Officer an option to purchase 753,864 shares of its Class A Common Stock, which vests over a five-year period, commencing on January 1, 2014, at the rate of 20% per year. The exercise price is determined by multiplying $42.00 by the aggregate change in the DJ Wilshire 5000 Index from and after January 1, 2008 through the close of business on the trading date next preceding each date on which the option is exercised. The exercise price will not be less than $37.65 per share and the excess of the fair value of the Company’s Class A Common Stock cannot exceed $70 per share over the exercise price. At December 30, 2017 and December 31, 2016, 150,773 shares and 301,546 shares of the stock option remained outstanding, respectively. If the outstanding shares at December 30, 2017 were exercised on that date, the price would have been $121.10 per share. If the outstanding shares at December 31, 2016 were exercised on that date, the exercise price would have been $99.85 per share. Reflected in the table above is the minimum exercise price of $37.65. The Company is accounting for this award as a market-based award which was valued utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes fair value based on the most likely outcome. Under the Monte Carlo Simulation pricing model, the Company calculated the weighted average fair value per share to be $8.41, and recorded stock-based compensation expense of $0.2 million, $0.3 million, and $0.5 million related to this option in the fiscal 2017, 2016, and 2015, respectively. Stock-Based Compensation The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income: 2017 2016 2015 (in thousands) Amounts included in advertising, promotional and selling expenses $ 2,868 $ 2,507 $ 2,943 Amounts included in general and administrative expenses 3,448 3,641 3,722 Total stock-based compensation expense $ 6,316 $ 6,148 $ 6,665 Amounts related to performance-based stock awards included $ 36 $ 203 $ 831 As permitted by ASC 718, the Company uses a lattice model, such as the trinomial option-pricing model, to estimate the fair values of stock options. The Company believes that the Black-Scholes option-pricing model is less effective than the trinomial option-pricing model in valuing long-term options, as it assumes that volatility and interest rates are constant over the life of the option. In addition, the Company believes that the trinomial option-pricing model more accurately reflects the fair value of its stock awards, as it takes into account historical employee exercise patterns based on changes in the Company’s stock price and other relevant variables. The weighted-average fair value of stock options granted during 2017, 2016, and 2015 was $72.52, $87.70, and $128.54 per share, respectively, as calculated using a trinomial option-pricing model. The 2016 weighted-average fair value of the stock options granted during 2016 excludes the January 1, 2016 stock options granted to the Chief Executive Officer with a weighted-average fair value of $39.16, as calculated using the Monte Carlo Simulation pricing model. Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows: 2017 2016 2015 Expected volatility 36.2% 34.0% 34.2% Risk-free interest rate 2.30% 2.16% 2.16% Expected dividends 0% 0% 0% Exercise factor 3.63 times 2.68 times 3.0 times Discount for post-vesting restrictions 0.0% 0.0% 0.0% Expected volatility is based on the Company’s historical realized volatility. The risk-free interest rate represents the implied yields available from the U.S. Treasury zero-coupon Fair value of restricted stock awards is based on the Company’s traded stock price on the date of the grants. Fair value of investment shares is calculated using the trinomial option-pricing model. The Company uses the straight-line attribution method in recognizing stock-based compensation expense for awards that vest based on service conditions. For awards that vest subject to performance conditions, compensation expense is recognized ratably for each tranche of the award over the performance period if it is probable that performance conditions will be met. The Company recognizes compensation expense, less estimated forfeitures. Because most of the Company’s equity awards vest on January 1 st st The total fair value of options vested during 2017, 2016, and 2015 was $2.9 million, $9.9 million, and $4.1 million, respectively. The aggregate intrinsic value of stock options exercised during 2017, 2016, and 2015 was $14.9 million, $52.7 million, $37.7 million, respectively. Based on equity awards outstanding as of December 30, 2017, there is $19.0 million of unrecognized compensation costs, net of estimated forfeitures, related to unvested share-based compensation arrangements that are expected to vest. Such costs are expected to be recognized over a weighted-average period of 2.76 years. The following table summarizes the estimated future annual stock-based compensation expense related to share-based arrangements existing as of December 30, 2017 that are expected to vest (in thousands): 2018 $ 5,519 2019 4,360 2020 3,107 2021 2,618 2022 1,992 Thereafter 1,388 Total $ 18,984 Non-Vested The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards: Number of Weighted Average Fair Non-vested 64,968 $ 166.29 Granted 25,946 132.88 Vested (22,213 ) 151.32 Forfeited (6,296 ) 178.56 Non-vested 62,405 $ 155.21 22,213 shares vested in 2017 with a weighted average fair value of $151.32. 19,740 shares vested in 2016 with a weighted average fair value of $114.12. 25,732 shares vested in 2015 with a weighted average fair value of $79.44. Stock Repurchase Program In 1998, the Board of Directors authorized management to implement a stock repurchase program. As of December 30, 2017, the Company has repurchased a cumulative total of approximately 13.4 million shares of its Class A Common Stock for an aggregate purchase price of approximately $752.4 million as follows: Number of Aggregate Purchase (in thousands) Repurchased at December 27, 2014 10,921,933 $ 307,387 2015 repurchases 616,747 138,705 Repurchased at December 26, 2015 11,538,680 446,092 2016 repurchases 944,876 161,658 Repurchased at December 31, 2016 12,483,556 607,750 2017 repurchases 963,790 144,602 Repurchased at December 30, 2017 13,447,346 $ 752,352 |
Employee Retirement Plans and P
Employee Retirement Plans and Post-Retirement Medical Benefits | 12 Months Ended |
Dec. 30, 2017 | |
Employee Retirement Plans and Post-Retirement Medical Benefits | M. Employee Retirement Plans and Post-Retirement Medical Benefits The Company has one retirement plan covering substantially all non-union Non-Union The Boston Beer Company 401(k) Plan (the “Boston Beer 401(k) Plan”), which was established by the Company in 1993, is a Company-sponsored defined contribution plan that covers a majority of the Company’s non-union non-union Union Plans The Samuel Adams Cincinnati Brewery 401(k) Plan for Represented Employees (the “SACB 401(k) Plan”) is a Company-sponsored defined contribution plan. It was established in 1997 and is available to all union employees upon commencement of employment or, if later, attaining age 21. Participants may make voluntary contributions up to 60% of their annual compensation to the SACB 401(k) Plan, subject to IRS limitations. Company contributions for fiscal 2017 and 2016 were insignificant. The basic annual administrative fee for the SACB 401(k) Plan is paid by the Plan’s investment fund revenue. In addition, per the Service Provider Payment Agreement, a credit up to a maximum of two basis points multiplied by the total amount of assets under the Plan per year, excluding participant loans, is available for paying eligible Plan expenses. The Company is responsible for the payment of any additional fees related to the management of the SACB 401(k) Plan. Such fees are not material to the Company. The Samuel Adams Brewery Company, Ltd. Local Union No. 1199 Pension Plan (the “Local 1199 Pension Plan”) is a Company-sponsored defined benefit pension plan. It was established in 1991 and is open to all union employees who are covered by the Company’s collective bargaining agreement with Teamsters Local Union No. 1199 (“Local Union #1199”), or persons on leave from the Company who are employed by Local Union #1199, and in either case who have completed 12 consecutive months of employment with at least 750 hours worked. The defined benefit is determined based on years of service since July 1991. The Company made contributions of $238,000, $219,000 and $188,000 in 2017, 2016 and 2015, respectively. At December 30, 2017 and December 31, 2016, the unfunded projected pension benefits were $2.2 million and $1.9 million, respectively. The Company provides a supplement to eligible retirees from Local #1, Local #20, and Local Union #1199 to assist them with the cost of Medicare gap coverage after their retirement on account of age or permanent disability. To qualify for this benefit (collectively, the “Retiree Medical Plan”), an employee must have worked for at least 20 years for the Company or its predecessor at the Company’s Cincinnati Brewery, must have been enrolled in the Company’s group medical insurance plan for at least 5 years before retirement and, in the case of retirees from Local #20, for at least 7 of the last 10 years of their employment, and must be eligible for Medicare benefits under the Social Security Act. The accumulated post-retirement benefit obligation was determined using a discount rate of 3.68% at December 30, 2017 and 4.25% at December 31, 2016 and a 2.5% health care cost increase based on the Cincinnati Consumer Price Index for the years 2017, 2016, and 2015. The effect of a 1% point increase and the effect of a 1% point decrease in the assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic post-retirement health care benefit costs and on the accumulated post-retirement benefit obligation for health care benefits would not be significant. In addition, the comprehensive medical plan offered to currently employed members of Local #20 remains available to them should they retire after reaching age 57, and before reaching age 65, with at least 20 years of service with the Company or its predecessor at the Company’s Cincinnati Brewery. These eligible retirees may choose to continue to be covered under the Company’s comprehensive group medical plan until they reach the age when they are eligible for Medicare health benefits under the Social Security Act or coverage under a comparable State health benefit plan. Eligible retirees pay 100% of the cost of the coverage. The funded status of the Local 1199 Pension Plan and the Retiree Medical Plan are as follows: Local 1199 Pension Plan Retiree Medical Plan December 30, December 31, December 30, December 31, 2017 2016 2017 2016 (in thousands) Fair value of plan assets at end of fiscal year $ 3,330 $ 2,733 $ — $ — Benefit obligation at end of fiscal year 5,572 4,611 799 708 Unfunded Status $ (2,242 ) $ (1,878 ) $ (799 ) $ (708 ) The Local 1199 Pension Plan invests in a family of funds designed to minimize excessive short-term risk and focus on consistent, competitive long-term performance, consistent with the funds’ investment objectives. The fund-specific objectives vary and include maximizing long-term returns both before and after taxes, maximizing total return from capital appreciation plus income, and investing in funds that invest in common stock of companies that cover a broad range of industries. The Local 1199 Plan’s investments are considered category 1 assets in the fair value hierarchy and the fair values were determined by reference to period-end The basis of the long-term rate of return assumption of 6.5% reflects the Local 1199 Plan’s current targeted asset mix of approximately 35% debt securities and 65% equity securities with assumed average annual returns of approximately 3% to 6% for debt securities and 8% to 12% for equity securities. It is assumed that the Local 1199 Pension Plan’s investment portfolio will be adjusted periodically to maintain the targeted ratios of debt securities and equity securities. Additional consideration is given to the Local 1199 Plan’s historical returns as well as future long-range projections of investment returns for each asset category. The assumed discount rate in estimating the pension obligation was 3.68% and 4.25% at December 30, 2017 and December 31, 2016, respectively. The Local 1199 Plan’s weighted-average asset allocations at the measurement dates by asset category are as follows: Asset Category December 30, December 31, Equity securities 67 % 66 % Debt securities 33 % 34 % Total 100 % 100 % |
Net Income per Share
Net Income per Share | 12 Months Ended |
Dec. 30, 2017 | |
Net Income per Share | N. Net Income per Share Net Income per Common Share — Basic The following table sets forth the computation of basic net income per share using the two-class December 30, December 31, December 26, (in thousands, except per share data) Net Income $ 99,049 $ 87,349 $ 98,414 Allocation of net income for basic: Class A Common Stock $ 73,114 $ 63,717 $ 71,798 Class B Common Stock 25,391 23,190 26,154 Unvested participating shares 544 442 462 $99,049 $87,349 $98,414 Weighted average number of shares for basic: Class A Common Stock 8,933 9,189 9,619 Class B Common Stock* 3,102 3,344 3,504 Unvested participating shares 67 64 62 12,102 12,597 13,185 Net income per share for basic: Class A Common Stock $ 8.18 $ 6.93 $ 7.46 Class B Common Stock $ 8.18 $ 6.93 $ 7.46 * Change in Class B Common Stock resulted from the conversion of 125,000 shares to Class A Common Stock on November 4, 2016, 45,000 shares to Class A Common Stock on November 30, 2016, 100,000 shares to Class A Common Stock on March 7, 2017, and 79,000 shares to Class A Common Stock on October 31, 2017 with the ending number of shares reflecting the weighted average for the period. Net Income per Common Share — Diluted The Company calculates diluted net income per share for common stock using the more dilutive of (1) the treasury stock method, or (2) the two-class The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the two-class Fifty-two Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 73,114 8,933 $ 8.18 Add: effect of dilutive potential common shares Share-based awards — 145 Class B Common Stock 25,391 3,102 Net effect of unvested participating shares 7 Net income per common share — diluted $ 98,512 12,180 $ 8.09 Fifty-three weeks ended December 31, 2016 Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 63,717 9,189 $ 6.93 Add: effect of dilutive potential common shares Share-based awards — 263 Class B Common Stock 23,190 3,344 Net effect of unvested participating shares 9 Net income per common share — diluted $ 86,916 12,796 $ 6.79 Fifty-two Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 71,798 9,619 $ 7.46 Add: effect of dilutive potential common shares Share-based awards — 397 Class B Common Stock 26,154 3,504 Net effect of unvested participating shares 14 Net income per common share — diluted $ 97,966 13,520 $ 7.25 Basic net income per common share for each share of Class A Common Stock and Class B Common Stock is $8.18, $6.93, and $7.46 for the fiscal years 2017, 2016, and 2015, respectively, as each share of Class A and Class B participates equally in earnings. Shares of Class B are convertible at any time into shares of Class A on a one-for-one Weighted average stock options to purchase 785,000, 712,000, and 16,000 shares of Class A Common Stock were outstanding during fiscal 2017, 2016, and 2015, respectively, but not included in computing diluted income per share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase 36,000, 35,000, and 15,000 shares of Class A Common Stock were outstanding during fiscal 2017, 2016, and 2015, respectively, but not included in computing dilutive income per share because the performance criteria of these stock options were not met as of December 30, 2017, December 31, 2016, and December 26, 2015, respectively. Furthermore, stock options to purchase 12,000 shares of Class A Common Stock were not included in computing diluted income per share because these stock options were cancelled during the fifty-two |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 30, 2017 | |
Accumulated Other Comprehensive Loss | O. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss represents amounts of unrecognized actuarial gains or losses related to the Company sponsored defined benefit pension plan and post-retirement medical plan, net of tax effect and currency translation adjustments. Changes in accumulated other comprehensive loss represent actuarial losses or gains, net of tax effect, recognized as components of net periodic benefit costs and currency translation adjustments. The following table details the changes in accumulated other comprehensive loss for 2017, 2016, and 2015 (in thousands): Accumulated Other Balance at December 27, 2014 $ (1,133 ) Deferred pension and other post-retirement benefit costs, net of taxes of ($99) 130 Amortization of Deferred benefit costs, net of tax of ($43) 74 Currency translation adjustment (22 ) Balance at December 26, 2015 $ (951 ) Deferred pension and other post-retirement benefit costs, net of taxes of ($69) 122 Amortization of Deferred benefit costs, net of tax of $101 (175 ) Currency translation adjustment (99 ) Balance at December 31, 2016 $ (1,103 ) Deferred pension and other post-retirement benefit costs, net of taxes of $57 (170 ) Amortization of Deferred benefit costs, net of tax of $11 (32 ) Currency translation adjustment 17 Balance at December 30, 2017 $ (1,288 ) |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 30, 2017 | |
Valuation and Qualifying Accounts | P. Valuation and Qualifying Accounts The Company maintains reserves against accounts receivable for doubtful accounts and inventory for obsolete and slow-moving inventory. The Company also maintains reserves against accounts receivable for distributor promotional allowances. In addition, the Company maintains a reserve for estimated returns of stale beer, which is included in accrued expenses. Allowance for Doubtful Accounts Balance at Net Provision Amounts Balance at End of Period (In thousands) 2017 $ — $ — $ — $ — 2016 $ 244 $ (244 ) $ — $ — 2015 $ 144 $ 165 $ (65 ) $ 244 Discount Accrual Balance at Net Provision Amounts Balance at (In thousands) 2017 $ 3,078 $ 30,171 $ (30,177 ) $ 3,072 2016 $ 2,813 $ 33,157 $ (32,892 ) $ 3,078 2015 $ 3,006 $ 33,204 $ (33,397 ) $ 2,813 Inventory Obsolescence Reserve Balance at Net Provision Amounts Balance at (In thousands) 2017 $ 2,262 $ 5,751 $ (6,187 ) $ 1,826 2016 $ 1,525 $ 4,707 $ (3,970 ) $ 2,262 2015 $ 1,328 $ 4,045 $ (3,848 ) $ 1,525 Stale Beer Reserve Balance at Net Provision Amounts Balance at (In thousands) 2017 $ 5,226 $ 5,449 $ (7,652 ) $ 3,023 2016 $ 3,254 $ 10,466 $ (8,494 ) $ 5,226 2015 $ 2,422 $ 7,780 $ (6,948 ) $ 3,254 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 30, 2017 | |
Subsequent Events | Q. Subsequent Events As disclosed in Note L, on January 1, 2018 the Company granted stock options and restricted stock awards and employees elected to purchase shares under the investment share purchase program. On February 14, 2018, the Company announced that David Burwick will join the Company as its President and Chief Executive Officer during the second quarter of 2018. The Company’s agreement with Mr. Burwick includes a base salary of $750,000, a sign-on The Company evaluated subsequent events occurring after the balance sheet date, December 30, 2017, and concluded that there were no other events of which management was aware that occurred after the balance sheet date that would require any adjustment to or disclosure in the accompanying consolidated financial statements. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 30, 2017 | |
Quarterly Results (Unaudited) | R. Quarterly Results (Unaudited) The Company’s fiscal quarters are consistently determined year to year and generally consist of 13 weeks, except in those fiscal years in which there are fifty-three weeks where the last fiscal quarters then consist of 14 weeks. In management’s opinion, the following unaudited information includes all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the information for the quarters presented. The operating results for any quarter are not necessarily indicative of results for any future quarters. For Quarters Ended December 30, September 30, July 1, April 1, December 31, September 24, June 25, March 26, (13 weeks) (13 weeks) (13 weeks) (13 weeks) (14 weeks) (13 weeks) (13 weeks) (13 weeks) (In thousands, except per share data) Net revenue $ 206,320 $ 247,047 $ 247,930 $ 161,695 $ 219,370 $ 253,433 $ 244,816 $ 188,827 Gross profit 108,037 131,501 134,019 76,344 107,656 133,607 126,876 91,531 Operating income 14,863 51,496 45,288 4,028 34,325 50,309 41,788 11,237 Net income $ 30,530 $ 33,683 $ 29,125 $ 5,711 $ 22,166 $ 31,530 $ 26,621 $ 7,032 Net income per share — basic $ 2.60 $ 2.82 $ 2.38 $ 0.46 $ 1.77 $ 2.53 $ 2.11 $ 0.55 Net income per share — diluted $ 2.57 $ 2.78 $ 2.35 $ 0.45 $ 1.75 $ 2.48 $ 2.06 $ 0.53 (1) During the fourth quarter of 2016, the Company recorded a $3.6 million decrease in stock-based compensation expense related to the planned retirement of the Company’s Chief Executive Officer in 2018. (2) During the fourth quarter of 2017, the Company recorded a $20.3 million tax benefit due to the Tax Cuts and Jobs Act of 2017. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2017 | |
Fiscal Year | Fiscal Year The Company’s fiscal year is a fifty-two fifty-two fifty-two |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents at December 30, 2017 and December 31, 2016 included cash on-hand The Company has restricted cash associated with a term note agreement with Bank of America that was required by the Commonwealth of Pennsylvania to fund economic development at the Company’s Pennsylvania Brewery. The restricted cash subject to this agreement amounted to $340,000 and $400,000 at December 30, 2017 and December 31, 2016, respectively, and is included in other assets on the Company’s Consolidated Balance Sheets. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable primarily consist of trade receivables. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowance for doubtful accounts as of December 30, 2017 and December 31, 2016 are adequate, but actual write-offs could exceed the recorded allowance. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and trade receivables. The Company places its cash equivalents with high credit quality financial institutions. As of December 30, 2017, the Company’s cash and cash equivalents were invested in investment-grade, highly-liquid U.S. government agency corporate money market accounts. The Company sells primarily to a network of independent wholesalers in the United States and to a network of foreign wholesalers, importers or other agencies (collectively referred to as “Distributors”). In 2017, 2016 and 2015, sales to foreign Distributors were approximately 4% of total sales. Receivables arising from these sales are not collateralized; however, credit risk is minimized as a result of the large and diverse nature of the Company’s customer base. There were no individual customer accounts receivable balances outstanding at December 30, 2017 and December 31, 2016 that were in excess of 10% of the gross accounts receivable balance on those dates. No individual customers represented more than 10% of the Company’s revenues during fiscal years 2017, 2016, and 2015. |
Financial Instruments and Fair Value of Financial Instruments | Financial Instruments and Fair Value of Financial Instruments The Company’s primary financial instruments consisted of cash equivalents, accounts receivable, accounts payable and accrued expenses at December 30, 2017 and December 31, 2016. The Company determines the fair value of its financial assets and liabilities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures |
Inventories and Provision for Excess or Expired Inventory | Inventories and Provision for Excess or Expired Inventory Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of hops, malt, apple juice, other brewing materials and packaging, are stated at the lower of cost (first-in, first-out on-hand The provisions for excess or expired inventory are based on management’s estimates of forecasted usage of inventories on hand and under contract. Forecasting usage involves significant judgments regarding future demand for the Company’s various existing products and products under development as well as the potency and shelf-life of various ingredients. A significant change in the timing or level of demand for certain products as compared to forecasted amounts may result in recording additional provisions for excess or expired inventory in the future. Provisions for excess inventory are included in cost of goods sold and have historically been adequate to provide for losses on its inventory. Provision for excess or expired inventory included in cost of goods sold was $5.8 million, $4.5 million, and $4.0 million in fiscal years 2017, 2016, and 2015, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant, and equipment are stated at cost. Expenditures for repairs and maintenance are expensed as incurred. Major renewals and betterments that extend the life of the property are capitalized. Depreciation is computed using the straight-line method based upon the estimated useful lives of the underlying assets as follows: Kegs 5 years Computer software and equipment 2 to 5 years Office equipment and furniture 3 to 7 years Machinery and plant equipment 3 to 20 years, or the term of the production agreement, whichever is shorter Leasehold improvements Lesser of the remaining term of the lease or estimated useful life of the asset Building and building improvements 12 to 20 years, or the remaining useful life of the building, whichever is shorter The carrying value of property, plant and equipment, net of accumulated depreciation, at December 30, 2017 was $384.2 million. For purposes of determining whether there are any impairment losses, as further discussed below, management has historically examined the carrying value of the Company’s identifiable long-lived assets, including their useful lives, semi-annually, or more frequently when indicators of impairment are present. Evaluations of whether indicators of impairment exist involve judgments regarding the current and future business environment and the length of time the Company intends to use the asset. If an impairment loss is identified based on the fair value of the asset, as compared to the carrying value of the asset, such loss would be charged to expense in the period the impairment is identified. Furthermore, if the review of the carrying values of the long-lived assets indicates impairment of such assets, the Company may determine that shorter estimated useful lives are more appropriate. In that event, the Company will be required to record additional depreciation in future periods, which will reduce earnings. Estimating the amount of impairment, if any, requires significant judgments including identification of potential impairments, market comparison to similar assets, estimated cash flows to be generated by the asset, discount rates, and the remaining useful life of the asset. Impairment of assets included in operating expenses was $2.5 million, $0.7 million and $0.3 million in fiscal years 2017, 2016 and 2015, respectively. Factors generally considered important which could trigger an impairment review on the carrying value of long-lived assets include the following: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in the manner of use of acquired assets or the strategy for the Company’s overall business; (3) underutilization of assets; and (4) discontinuance of products by the Company or its customers. The Company believes that the carrying value of its long-lived assets was realizable as of December 30, 2017 and December 31, 2016. |
Segment Reporting | Segment Reporting Previously, the Company consisted of two operating segments that each produced and sold alcohol beverages. The first being the Boston Beer Company operating segment comprised of the Company’s Samuel Adams, Twisted Tea, Angry Orchard and Truly Spiked & Sparkling brands and the second being the A&S Brewing operating segment comprised of The Traveler Beer Company, Coney Island Brewing Company, Angel City Brewing Company and Concrete Beach Brewing Company. In 2016, sales from A&S brands were less than 5% of net revenues and in 2015, sales from A&S brands were less than 7% of net revenues. In 2017, the Company consolidated the A&S Brewing operating segment into the Boston Beer Company operating segment. The rationale for this change in operating segments was mainly driven by the departure of Alan Newman, Head of A&S Brewing, who left the Company at the end of 2016. Upon Mr. Newman’s departure, the A&S Brewing brands reporting structure changed to be in line with the Company’s Samuel Adams, Twisted Tea, Angry Orchard and Truly Spiked & Sparkling brands. Additionally, all brands sell predominantly low alcohol beverages, which are sold to the same types of customers in similar size quantities, at similar price points and through substantially the same channels of distribution. These beverages are manufactured using similar production processes, have comparable alcohol content and generally fall under the same regulatory environment. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company does not amortize goodwill and intangible assets, but evaluates the recoverability by comparing the carrying value and the fair value annually at the end of the fiscal month of August, or more frequently when indicators of impairment are present. The Company has concluded that its goodwill and intangible assets were not impaired as of December 30, 2017 and December 31, 2016. As of December 30, 2017 and December 31, 2016, goodwill amounted to $3.7 million. As of December 30, 2017 and December 31, 2016, intangible assets amounted to $2.0 million and were included in other assets in the accompanying consolidated balance sheets. |
Refundable Deposits on Kegs and Pallets | Refundable Deposits on Kegs and Pallets The Company distributes its draft beer in kegs and packaged beer primarily in glass bottles and cans and such kegs, bottles and cans are shipped on pallets to Distributors. Most kegs and pallets are owned by the Company. Kegs are reflected in the Company’s balance sheets at cost and are depreciated over the estimated useful life of the keg, while pallets are expensed upon purchase. Upon shipment of beer to Distributors, the Company collects a refundable deposit on the kegs and pallets, which is included in current liabilities in the Company’s balance sheets. Upon return of the kegs and pallets to the Company, the deposit is refunded to the Distributor. The Company has experienced some loss of kegs and pallets and anticipates that some loss will occur in future periods due to the significant volume of kegs and pallets handled by each Distributor and retailer, the homogeneous nature of kegs and pallets owned by most brewers and the relatively small deposit collected for each keg when compared with its market value. The Company believes that this is an industry-wide issue and that the Company’s loss experience is not atypical. The Company believes that the loss of kegs and pallets, after considering the forfeiture of related deposits, has not been material to the financial statements. The Company uses internal records, records maintained by Distributors, records maintained by other third party vendors and historical information to estimate the physical count of kegs and pallets held by Distributors. These estimates affect the amount recorded as property, plant and equipment and current liabilities as of the date of the financial statements. The actual liability for refundable deposits could differ from these estimates. For the year ended December 30, 2017, the Company decreased its liability for refundable deposits, gross property, plant and equipment and related accumulated depreciation by $1.0 million, $1.0 million and $1.0 million, respectively. For the year ended December 31, 2016, the Company decreased its liability for refundable deposits, gross property, plant and equipment and related accumulated depreciation by $1.1 million, $1.4 million and $1.4 million, respectively. As of December 30, 2017, and December 31, 2016, the Company’s balance sheet includes $12.9 million and $14.3 million, respectively, in refundable deposits on kegs and pallets and $5.9 million and $12.0 million, respectively, in kegs, net of accumulated depreciation. |
Income Taxes | Income Taxes Income tax expense was $17.1 million, $49.8 million and $56.6 million in fiscal years 2017, 2016 and 2015, respectively. The Company provides for deferred taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. This results in differences between the book and tax basis of the Company’s assets, liabilities and carry-forwards such as tax credits. In estimating future tax consequences, all expected future events, other than enactment of changes in the tax laws or rates, are generally considered. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different state tax jurisdictions. The Company is periodically reviewed by tax authorities regarding the amount of taxes due. These reviews include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. The Company records estimated reserves for exposures associated with positions that it takes on its income tax returns that do not meet the more likely than not standards as defined in ASC Topic 740, Income Taxes |
Revenue Recognition and Classification of Customer Programs and Incentives | Revenue Recognition and Classification of Customer Programs and Incentives The Company recognizes revenue on product sales at the time when the product is shipped and the following conditions are met: persuasive evidence of an arrangement exists, title has passed to the customer according to the shipping terms, the price is fixed and determinable, and collection of the sales proceeds is reasonably assured. If the conditions for revenue recognition are not met, the Company defers the revenue until all conditions are met. As of December 30, 2017 and December 31, 2016, the Company has deferred $5.5 million and $5.4 million, in revenue related to product shipped prior to these dates. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. The Company is committed to maintaining the freshness of the product in the market. In certain circumstances and with the Company’s approval, the Company accepts and destroys stale beer that is returned by Distributors. The Company generally credits approximately fifty percent of the distributor’s cost of the beer that has passed its expiration date for freshness when it is returned to the Company or destroyed. The Company reduces revenue and establishes an accrual based upon both historical returns, which is applied to an estimated lag time for receipt of product, and knowledge of specific return transactions. Estimating this reserve involves significant judgments and estimates, including comparability of historical return trends to future trends, lag time from date of sale to date of return, and product mix of returns. Stale beer expense is reflected in the accompanying financial statements as a reduction of revenue. Historically, the cost of actual stale beer returns has been in line with established reserves, however, the cost could differ materially from the estimated reserve which would impact revenue. As of December 30, 2017 and December 31, 2016, the stale beer reserve was $3.0 million and $5.2 million, respectively. These amounts are included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Customer programs and incentives, which include customer promotional discount programs, customer incentives and other payments, are a common practice in the alcohol beverage industry. The Company makes these payments to customers and incurs these costs to promote sales of products and to maintain competitive pricing. Amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising, promotional and selling expenses in accordance with ASC Topic 605-50, Revenue Recognition- Customer Payments and Incentives, Customer promotional discount programs are entered into with Distributors for certain periods of time. Amounts paid to Distributors in connection with these programs in fiscal years 2017, 2016 and 2015 were $30.2 million, $33.2 million and $33.2 million, respectively. The reimbursements for discounts to Distributors are recorded as reductions to net revenue. The agreed-upon discount rates are applied to certain Distributors’ sales to retailers, based on volume metrics, in order to determine the total discounted amount. The computation of the discount allowance requires that management make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. Actual promotional discounts owed and paid have historically been in line with allowances recorded by the Company, however, the amounts could differ from the estimated allowance. Customer incentives and other payments are made primarily to Distributors based upon performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company’s products may include, but are not limited to point-of-sale In connection with its preparation of financial statements and other financial reporting, management is required to make certain estimates and assumptions regarding the amount, timing and classification of expenditures resulting from these activities. Actual expenditures incurred could differ from management’s estimates and assumptions. |
Excise Taxes | Excise Taxes The Company is responsible for compliance with the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Treasury Department (the “TTB”) regulations which includes making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. The Company is currently under audit for the years 2015, 2016 and 2017. Individual states also impose excise taxes on alcohol beverages in varying amounts. The Company calculates its excise tax expense based upon units shipped and on its understanding of the applicable excise tax laws. |
Cost of Goods Sold | Cost of Goods Sold The following expenses are included in cost of goods sold: raw material costs, packaging costs, costs and income related to deposit activity, purchasing and receiving costs, manufacturing labor and overhead, brewing and processing costs, inspection costs relating to quality control, inbound freight charges, depreciation expense related to manufacturing equipment and warehousing costs, which include rent, labor and overhead costs. |
Shipping Costs | Shipping Costs Costs incurred for the shipping of products to customers are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income. The Company incurred shipping costs of $45.3 million, $49.2 million, and $62.2 million in fiscal years 2017, 2016, and 2015, respectively. |
Advertising and Sales Promotions | Advertising and Sales Promotions The following expenses are included in advertising, promotional and selling expenses in the accompanying consolidated statements of comprehensive income: media advertising costs, sales and marketing expenses, salary and benefit expenses and meals, travel and entertainment expenses for the sales, brand and sales support workforce, promotional activity expenses, shipping costs related to shipments of finished goods from manufacturing locations to distributor locations and point-of-sale The Company conducts certain advertising and promotional activities in its Distributors’ markets and the Distributors make contributions to the Company for such efforts. Reimbursements from Distributors for advertising and promotional activities are recorded as reductions to advertising, promotional and selling expenses. |
General and Administrative Expenses | General and Administrative Expenses The following expenses are included in general and administrative expenses in the accompanying consolidated statements of comprehensive income: general and administrative salary and benefit expenses, insurance costs, professional service fees, rent and utility expenses, meals, travel and entertainment expenses for general and administrative employees, and other general and administrative overhead costs. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for share-based awards in accordance with ASC Topic 718, Compensation — Stock Compensation As permitted by ASC 718, the Company elected to use a lattice model, such as the trinomial option-pricing model, to estimate the fair values of stock options, with the exception of the 2008 and 2016 stock option grants to the Company’s Chief Executive Officer, which is considered to be a market-based award and was valued utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes fair value based on the most likely outcome. All option-pricing models require the input of subjective assumptions. These assumptions include the estimated volatility of the Company’s common stock price over the expected term, the expected dividend rate, the estimated post-vesting forfeiture rate, the risk-free interest rate and expected exercise behavior. See Note L for further discussion of the application of the option-pricing models. In addition, an estimated pre-vesting |
Net Income Per Share | Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted-average common shares and potentially dilutive securities outstanding during the period using the treasury stock method or the two-class |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting 2016-09 2016-09, 2016-09, fifty-two In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes 2015-17 |
Accounting Pronouncements Not Yet Effective | Accounting Pronouncements Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09 2014-09 2014-09 No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date 2015-14 2014-09 2014-09 2014-09 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 2016-02 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Estimated Useful Lives | Depreciation is computed using the straight-line method based upon the estimated useful lives of the underlying assets as follows: Kegs 5 years Computer software and equipment 2 to 5 years Office equipment and furniture 3 to 7 years Machinery and plant equipment 3 to 20 years, or the term of the production agreement, whichever is shorter Leasehold improvements Lesser of the remaining term of the lease or estimated useful life of the asset Building and building improvements 12 to 20 years, or the remaining useful life of the building, whichever is shorter |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Components of Inventories | Inventories consisted of the following: December 30, December 31, (in thousands) Current inventory: Raw materials $ 33,086 $ 35,314 Work in process 6,826 8,131 Finished goods 10,739 9,054 Total current inventory 50,651 52,499 Long term inventory 9,905 6,316 Total inventory $ 60,556 $ 58,815 |
Prepaid Expenses and Other Cu29
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: December 30, December 31, 2017 2016 (in thousands) Prepaid advertising, promotional and selling $ 3,328 $ 119 Prepaid malt and barley 1,819 1,644 Excise and other tax receivables 1,651 1,637 Supplier rebates 1,464 1,158 Prepaid insurance 1,055 1,144 Insurance cash surrender value — 1,254 Other 1,378 1,775 $ 10,695 $ 8,731 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 30, December 31, 2017 2016 (in thousands) Machinery and plant equipment $ 438,925 $ 420,486 Kegs 69,049 70,024 Land 22,295 22,295 Building and building improvements 112,912 112,508 Office equipment and furniture 24,307 22,412 Leasehold improvements 16,660 14,147 684,148 661,872 Less accumulated depreciation (299,868 ) (253,461 ) $ 384,280 $ 408,411 |
Accrued Expenses and Other Cu31
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: December 30, December 31, 2017 2016 (in thousands) Employee wages, benefits and reimbursements $ 16,275 $ 14,116 Accrued deposits 14,224 15,814 Advertising, promotional and selling expenses 13,605 8,562 Deferred revenue 5,472 5,381 Accrued stale beer 3,023 5,226 Accrued excise taxes 2,015 2,255 Accrued sales and use tax 1,873 2,437 Accrued freight 1,518 1,402 Other accrued liabilities 5,612 5,741 $ 63,617 $ 60,934 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Significant Components of Provisions for Income Taxes | Significant components of the provision for income taxes are as follows: 2017 2016 2015 (in thousands) Current: Federal $ 34,255 $ 35,390 $ 42,391 State 5,225 6,108 7,403 Total current 39,480 41,498 49,794 Deferred: Federal (22,489 ) 7,666 6,279 State 102 608 523 Total deferred (22,387 ) 8,274 6,802 Total provision for income taxes $ 17,093 $ 49,772 $ 56,596 |
Reconciliations to Statutory Rates | The Company’s reconciliations to statutory rates are as follows: 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 3.6 3.6 3.4 Deduction relating to U.S. production activities (3.2 ) (2.6 ) (2.7 ) Deduction relating to excess stock benefits (3.7 ) — — Change relating to enacted Tax Cuts and Jobs Act (17.5 ) — — Change in valuation allowance — (0.3 ) — Other 0.5 0.6 0.8 14.7 % 36.3 % 36.5 % |
Significant Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows at: December 30, December 31, 2017 2016 (in thousands) Deferred tax assets: Accrued expenses $ 2,484 $ 6,488 Stock-based compensation expense 4,175 5,929 Inventory 435 1,117 Other 2,598 4,097 Total deferred tax assets 9,692 17,631 Valuation allowance (439 ) (669 ) Total deferred tax assets net of valuation allowance 9,253 16,962 Deferred tax liabilities: Property, plant and equipment (42,076 ) (72,140 ) Prepaid expenses (1,341 ) (1,204 ) Goodwill (655 ) (879 ) Total deferred tax liabilities (44,072 ) (74,223 ) Net deferred tax liabilities $ (34,819 ) $ (57,261 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 (in thousands) Balance at beginning of year $ 589 $ 486 Increases related to current year tax positions 64 80 (Decreases) Increases related to prior year tax positions (259 ) 76 Decreases related to settlements (62 ) (50 ) Decreases related to lapse of statute of limitations (40 ) (3 ) Balance at end of year $ 292 $ 589 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Non-cancelable Contractual Obligations | As of December 30, 2017, projected cash outflows under non-cancelable Payments Due by Period Total 2018 2019 2020 2021 2022 Thereafter (in thousands) Brand support $ 71,822 $ 41,647 $ 4,657 $ 4,383 $ 4,335 $ 4,200 $ 12,600 Hops, barley and wheat 62,197 26,979 13,927 4,615 5,386 3,964 7,326 Apples and other ingredients 33,716 33,716 — — — — — Glass bottles 13,860 13,860 — — — — — Equipment and machinery 13,100 13,100 — — — — — Operating leases 12,764 3,119 2,844 2,515 2,571 1,715 — Other 8,979 4,456 2,541 1,178 333 333 138 Total contractual obligations $ 216,438 $ 136,877 $ 23,969 $ 12,691 $ 12,625 $ 10,212 $ 20,064 |
Common Stock and Share-Based 34
Common Stock and Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Summary of Stock Options under Equity Plan and Non-Employee Director Plan | Information related to stock options under the Equity Plan and the Non-Employee Shares Weighted- Weighted-Average Aggregate Outstanding at December 31, 2016 1,348,233 $ 141.98 Granted 15,373 150.10 Forfeited (12,208 ) 160.47 Expired — — Exercised (194,401 ) 79.78 Outstanding at December 30, 2017 1,156,997 $ 158.53 6.28 $ 45,877 Exercisable at December 30, 2017 182,242 $ 98.78 3.58 $ 17,554 Vested and expected to vest at December 30, 2017 562,478 $ 115.47 4.49 $ 44,461 |
Stock-Based Compensation Expense Included in Operating Expenses | The following table provides information regarding stock-based compensation expense included in operating expenses in the accompanying consolidated statements of comprehensive income: 2017 2016 2015 (in thousands) Amounts included in advertising, promotional and selling expenses $ 2,868 $ 2,507 $ 2,943 Amounts included in general and administrative expenses 3,448 3,641 3,722 Total stock-based compensation expense $ 6,316 $ 6,148 $ 6,665 Amounts related to performance-based stock awards included $ 36 $ 203 $ 831 |
Weighted Average Assumptions used to Estimate Fair Value of Stock Options | Weighted average assumptions used to estimate fair values of stock options on the date of grants are as follows: 2017 2016 2015 Expected volatility 36.2% 34.0% 34.2% Risk-free interest rate 2.30% 2.16% 2.16% Expected dividends 0% 0% 0% Exercise factor 3.63 times 2.68 times 3.0 times Discount for post-vesting restrictions 0.0% 0.0% 0.0% |
Summary of Estimated Future Annual Stock-Based Compensation Expense | The following table summarizes the estimated future annual stock-based compensation expense related to share-based arrangements existing as of December 30, 2017 that are expected to vest (in thousands): 2018 $ 5,519 2019 4,360 2020 3,107 2021 2,618 2022 1,992 Thereafter 1,388 Total $ 18,984 |
Summary of Vesting Activities of Shares Issued Under Investment Share Program and Restricted Stock Awards | The following table summarizes vesting activities of shares issued under the investment share program and restricted stock awards: Number of Weighted Average Fair Non-vested 64,968 $ 166.29 Granted 25,946 132.88 Vested (22,213 ) 151.32 Forfeited (6,296 ) 178.56 Non-vested 62,405 $ 155.21 |
Stock Repurchases | As of December 30, 2017, the Company has repurchased a cumulative total of approximately 13.4 million shares of its Class A Common Stock for an aggregate purchase price of approximately $752.4 million as follows: Number of Aggregate Purchase (in thousands) Repurchased at December 27, 2014 10,921,933 $ 307,387 2015 repurchases 616,747 138,705 Repurchased at December 26, 2015 11,538,680 446,092 2016 repurchases 944,876 161,658 Repurchased at December 31, 2016 12,483,556 607,750 2017 repurchases 963,790 144,602 Repurchased at December 30, 2017 13,447,346 $ 752,352 |
Employee Retirement Plans and35
Employee Retirement Plans and Post-Retirement Medical Benefits (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Funded Status of Local 1199 Pension Plan and Retiree Medical Plan | The funded status of the Local 1199 Pension Plan and the Retiree Medical Plan are as follows: Local 1199 Pension Plan Retiree Medical Plan December 30, December 31, December 30, December 31, 2017 2016 2017 2016 (in thousands) Fair value of plan assets at end of fiscal year $ 3,330 $ 2,733 $ — $ — Benefit obligation at end of fiscal year 5,572 4,611 799 708 Unfunded Status $ (2,242 ) $ (1,878 ) $ (799 ) $ (708 ) |
Local 1199 Plan's Weighted-Average Asset Allocations | The Local 1199 Plan’s weighted-average asset allocations at the measurement dates by asset category are as follows: Asset Category December 30, December 31, Equity securities 67 % 66 % Debt securities 33 % 34 % Total 100 % 100 % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Computation of Earnings Per Share, Basic | The following table sets forth the computation of basic net income per share using the two-class December 30, December 31, December 26, (in thousands, except per share data) Net Income $ 99,049 $ 87,349 $ 98,414 Allocation of net income for basic: Class A Common Stock $ 73,114 $ 63,717 $ 71,798 Class B Common Stock 25,391 23,190 26,154 Unvested participating shares 544 442 462 $99,049 $87,349 $98,414 Weighted average number of shares for basic: Class A Common Stock 8,933 9,189 9,619 Class B Common Stock* 3,102 3,344 3,504 Unvested participating shares 67 64 62 12,102 12,597 13,185 Net income per share for basic: Class A Common Stock $ 8.18 $ 6.93 $ 7.46 Class B Common Stock $ 8.18 $ 6.93 $ 7.46 * Change in Class B Common Stock resulted from the conversion of 125,000 shares to Class A Common Stock on November 4, 2016, 45,000 shares to Class A Common Stock on November 30, 2016, 100,000 shares to Class A Common Stock on March 7, 2017, and 79,000 shares to Class A Common Stock on October 31, 2017 with the ending number of shares reflecting the weighted average for the period. |
Computation of Earnings Per Share, Diluted | The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the two-class Fifty-two Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 73,114 8,933 $ 8.18 Add: effect of dilutive potential common shares Share-based awards — 145 Class B Common Stock 25,391 3,102 Net effect of unvested participating shares 7 Net income per common share — diluted $ 98,512 12,180 $ 8.09 Fifty-three weeks ended December 31, 2016 Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 63,717 9,189 $ 6.93 Add: effect of dilutive potential common shares Share-based awards — 263 Class B Common Stock 23,190 3,344 Net effect of unvested participating shares 9 Net income per common share — diluted $ 86,916 12,796 $ 6.79 Fifty-two Earnings to Common Shares EPS (in thousands, except per share data) As reported — basic $ 71,798 9,619 $ 7.46 Add: effect of dilutive potential common shares Share-based awards — 397 Class B Common Stock 26,154 3,504 Net effect of unvested participating shares 14 Net income per common share — diluted $ 97,966 13,520 $ 7.25 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Changes in Accumulated Other Comprehensive Loss | The following table details the changes in accumulated other comprehensive loss for 2017, 2016, and 2015 (in thousands): Accumulated Other Balance at December 27, 2014 $ (1,133 ) Deferred pension and other post-retirement benefit costs, net of taxes of ($99) 130 Amortization of Deferred benefit costs, net of tax of ($43) 74 Currency translation adjustment (22 ) Balance at December 26, 2015 $ (951 ) Deferred pension and other post-retirement benefit costs, net of taxes of ($69) 122 Amortization of Deferred benefit costs, net of tax of $101 (175 ) Currency translation adjustment (99 ) Balance at December 31, 2016 $ (1,103 ) Deferred pension and other post-retirement benefit costs, net of taxes of $57 (170 ) Amortization of Deferred benefit costs, net of tax of $11 (32 ) Currency translation adjustment 17 Balance at December 30, 2017 $ (1,288 ) |
Valuation and Qualifying Acco38
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Summary of Valuation and Qualifying Accounts | The Company maintains reserves against accounts receivable for doubtful accounts and inventory for obsolete and slow-moving inventory. The Company also maintains reserves against accounts receivable for distributor promotional allowances. In addition, the Company maintains a reserve for estimated returns of stale beer, which is included in accrued expenses. Allowance for Doubtful Accounts Balance at Net Provision Amounts Balance at End of Period (In thousands) 2017 $ — $ — $ — $ — 2016 $ 244 $ (244 ) $ — $ — 2015 $ 144 $ 165 $ (65 ) $ 244 Discount Accrual Balance at Net Provision Amounts Balance at (In thousands) 2017 $ 3,078 $ 30,171 $ (30,177 ) $ 3,072 2016 $ 2,813 $ 33,157 $ (32,892 ) $ 3,078 2015 $ 3,006 $ 33,204 $ (33,397 ) $ 2,813 Inventory Obsolescence Reserve Balance at Net Provision Amounts Balance at (In thousands) 2017 $ 2,262 $ 5,751 $ (6,187 ) $ 1,826 2016 $ 1,525 $ 4,707 $ (3,970 ) $ 2,262 2015 $ 1,328 $ 4,045 $ (3,848 ) $ 1,525 Stale Beer Reserve Balance at Net Provision Amounts Balance at (In thousands) 2017 $ 5,226 $ 5,449 $ (7,652 ) $ 3,023 2016 $ 3,254 $ 10,466 $ (8,494 ) $ 5,226 2015 $ 2,422 $ 7,780 $ (6,948 ) $ 3,254 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Quarterly Results | In management’s opinion, the following unaudited information includes all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the information for the quarters presented. The operating results for any quarter are not necessarily indicative of results for any future quarters. For Quarters Ended December 30, September 30, July 1, April 1, December 31, September 24, June 25, March 26, (13 weeks) (13 weeks) (13 weeks) (13 weeks) (14 weeks) (13 weeks) (13 weeks) (13 weeks) (In thousands, except per share data) Net revenue $ 206,320 $ 247,047 $ 247,930 $ 161,695 $ 219,370 $ 253,433 $ 244,816 $ 188,827 Gross profit 108,037 131,501 134,019 76,344 107,656 133,607 126,876 91,531 Operating income 14,863 51,496 45,288 4,028 34,325 50,309 41,788 11,237 Net income $ 30,530 $ 33,683 $ 29,125 $ 5,711 $ 22,166 $ 31,530 $ 26,621 $ 7,032 Net income per share — basic $ 2.60 $ 2.82 $ 2.38 $ 0.46 $ 1.77 $ 2.53 $ 2.11 $ 0.55 Net income per share — diluted $ 2.57 $ 2.78 $ 2.35 $ 0.45 $ 1.75 $ 2.48 $ 2.06 $ 0.53 (1) During the fourth quarter of 2016, the Company recorded a $3.6 million decrease in stock-based compensation expense related to the planned retirement of the Company’s Chief Executive Officer in 2018. (2) During the fourth quarter of 2017, the Company recorded a $20.3 million tax benefit due to the Tax Cuts and Jobs Act of 2017. |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 30, 2017USD ($)Customer | Dec. 31, 2016USD ($)Customer | Dec. 26, 2015USD ($)Customer | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Reserve | $ 3,000,000 | $ 5,200,000 | |
Restricted cash | $ 340,000 | $ 400,000 | |
Number of individual customer accounted for more than ten percent of account receivable balance | Customer | 0 | 0 | |
Number of individual customers represented more than ten percent of revenues | Customer | 0 | 0 | 0 |
Sales to foreign distributors as a percentage of total sales | 4.00% | 4.00% | 4.00% |
Inventory on hand, purchase commitment | $ 170,300,000 | ||
Provision for excess or expired inventory | 5,800,000 | $ 4,500,000 | $ 4,000,000 |
Property, plant and equipment, net | 384,280,000 | 408,411,000 | |
Impairment of assets | 2,451,000 | (235,000) | 258,000 |
Goodwill | 3,683,000 | 3,683,000 | |
Decrease in refundable deposits for lost kegs and pallets | (1,000,000) | (1,100,000) | |
Decrease in gross property, plant and equipment | (1,000,000) | (1,400,000) | |
Decrease in property, plant and equipment related accumulated depreciation | (1,000,000) | (1,400,000) | |
Refundable deposits on kegs and pallets | 12,900,000 | 14,300,000 | |
Income tax expense | 17,093,000 | 49,772,000 | 56,596,000 |
Deferred Revenue, Current | 5,472,000 | 5,381,000 | |
Amounts paid to customers | 258,649,000 | 244,213,000 | 273,629,000 |
Advertising and sales promotional expenditures | 128,000,000 | 105,300,000 | 120,100,000 |
Shipping costs | 45,300,000 | 49,200,000 | 62,200,000 |
Stock-based compensation | 6,316,000 | 6,148,000 | 6,665,000 |
Excess tax benefit from stock-based compensation arrangements recognized within income tax provision | 4,400,000 | 12,524,000 | $ 15,350,000 |
Deferred income taxes | 2,200,000 | $ 7,400,000 | |
Variable customer promotional discount programs expected additional liability recorded through retained earnings | 1,300,000 | ||
Contractual obligations | 216,438,000 | ||
A&S brands | Product Concentration Risk | Sales Revenue, Net | Maximum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 5.00% | 7.00% | |
Operating Leases | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Contractual obligations | 12,764,000 | $ 15,900,000 | |
Boston Beer Company Reporting Unit | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | 3,700,000 | 3,700,000 | |
A&S Brewing Collaborative Reporting Unit | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
intangible assets | 2,000,000 | 2,000,000 | |
Kegs | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, net | 5,900,000 | 12,000,000 | |
Distributors | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Amounts paid to distributors | 30,200,000 | 33,200,000 | $ 33,200,000 |
Advertising and sales promotional expenditures | 21,600,000 | 21,200,000 | 22,100,000 |
Reduction in revenue related to advertising, promotional and selling expenses | 15,300,000 | 16,100,000 | 16,600,000 |
Customers programs and incentives | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Amounts paid to customers | $ 51,800,000 | $ 54,400,000 | $ 55,300,000 |
Estimated Useful Lives (Detail)
Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 30, 2017 | |
Kegs | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Computer Software and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Computer Software and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Office Equipment and Furniture | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Office Equipment and Furniture | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Equipment and machinery | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 to 20 years, or the term of the production agreement, whichever is shorter |
Equipment and machinery | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Equipment and machinery | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Lesser of the remaining term of the lease or estimated useful life of the asset |
Building and Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 12 to 20 years, or the remaining useful life of the building, whichever is shorter |
Building and Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 12 years |
Building and Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Current inventory: | ||
Raw materials | $ 33,086 | $ 35,314 |
Work in process | 6,826 | 8,131 |
Finished goods | 10,739 | 9,054 |
Total current inventory | 50,651 | 52,499 |
Long term inventory | 9,905 | 6,316 |
Total inventory | $ 60,556 | $ 58,815 |
Summary of Prepaid Expenses and
Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Prepaid advertising, promotional and selling | $ 3,328 | $ 119 |
Prepaid malt and barley | 1,819 | 1,644 |
Excise and other tax receivables | 1,651 | 1,637 |
Supplier rebates | 1,464 | 1,158 |
Prepaid insurance | 1,055 | 1,144 |
Insurance cash surrender value | 1,254 | |
Other | 1,378 | 1,775 |
Prepaid Expense And Other Current Assets | $ 10,695 | $ 8,731 |
Summary of Property, Plant and
Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Machinery and plant equipment | $ 438,925 | $ 420,486 |
Kegs | 69,049 | 70,024 |
Land | 22,295 | 22,295 |
Building and building improvements | 112,912 | 112,508 |
Office equipment and furniture | 24,307 | 22,412 |
Leasehold improvements | 16,660 | 14,147 |
Property, Plant and Equipment, Gross, Total | 684,148 | 661,872 |
Less accumulated depreciation | (299,868) | (253,461) |
Property, plant and equipment, net | $ 384,280 | $ 408,411 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 51,200 | $ 49,300 | $ 43,400 |
Impairment of assets | $ 2,451 | 716 | $ 258 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Gain (loss) on disposal of property, plant and equipment | $ 1,000 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Goodwill | $ 3,683 | $ 3,683 |
Summary of Accrued Expenses and
Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Other Liabilities [Line Items] | ||
Employee wages, benefits and reimbursements | $ 16,275 | $ 14,116 |
Accrued deposits | 14,224 | 15,814 |
Advertising, promotional and selling expenses | 13,605 | 8,562 |
Deferred revenue | 5,472 | 5,381 |
Accrued stale beer | 3,023 | 5,226 |
Accrued excise taxes | 2,015 | 2,255 |
Accrued sales and use tax | 1,873 | 2,437 |
Accrued freight | 1,518 | 1,402 |
Other accrued liabilities | 5,612 | 5,741 |
Accrued expenses and other current liabilities | $ 63,617 | $ 60,934 |
Revolving Line of Credit - Addi
Revolving Line of Credit - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Commitment fee | 0.15% | |
Credit facility, borrowing outstanding | $ 0 | $ 0 |
EBITDA to interest expense ratio | 1263900.00% | |
EBITDA to interest expense, minimum allowable ratio | 200.00% | |
Total funded debt to EBITDA ratio | 0.00% | |
Total funded debt to EBITDA, maximum allowable ratio | 250.00% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit, current borrowing capacity | $ 150,000,000 | |
Basis spread on variable rate | 0.45% | |
Line of credit, expiration date | Mar. 31, 2019 | |
Debt, covenant compliance | The Company was in compliance with all financial covenants as of December 30, 2017 and December 31, 2016. | |
Revolving Credit Facility | Alternative Prime Rate | ||
Debt Instrument [Line Items] | ||
Debt interest rate at end of period | 4.50% | |
Revolving Credit Facility | LIBOR rate | ||
Debt Instrument [Line Items] | ||
Debt interest rate at end of period | 1.49% |
Significant Components of Provi
Significant Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Current: | |||
Federal | $ 34,255 | $ 35,390 | $ 42,391 |
State | 5,225 | 6,108 | 7,403 |
Total current | 39,480 | 41,498 | 49,794 |
Deferred: | |||
Federal | (22,489) | 7,666 | 6,279 |
State | 102 | 608 | 523 |
Total deferred | (22,387) | 8,274 | 6,802 |
Total provision for income taxes | $ 17,093 | $ 49,772 | $ 56,596 |
Reconciliations to Statutory Ra
Reconciliations to Statutory Rates (Detail) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 3.60% | 3.60% | 3.40% |
Deduction relating to U.S. production activities | (3.20%) | (2.60%) | (2.70%) |
Deduction relating to excess stock benefits | (3.70%) | ||
Change relating to enacted Tax Cuts and Jobs Act | (17.50%) | ||
Change in valuation allowance | (0.30%) | ||
Other | 0.50% | 0.60% | 0.80% |
Effective Income Tax Rate Reconciliation, Percent, Total | 14.70% | 36.30% | 36.50% |
Significant Components of Compa
Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Accrued expenses | $ 2,484 | $ 6,488 |
Stock-based compensation expense | 4,175 | 5,929 |
Inventory | 435 | 1,117 |
Other | 2,598 | 4,097 |
Total deferred tax assets | 9,692 | 17,631 |
Valuation allowance | (439) | (669) |
Total deferred tax assets net of valuation allowance | 9,253 | 16,962 |
Deferred tax liabilities: | ||
Property, plant and equipment | (42,076) | (72,140) |
Prepaid expenses | (1,341) | (1,204) |
Goodwill | (655) | (879) |
Total deferred tax liabilities | (44,072) | (74,223) |
Net deferred tax liabilities | $ (34,819) | $ (57,261) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 30, 2017USD ($) | Dec. 30, 2017USD ($)State | Dec. 31, 2016USD ($) | Dec. 26, 2015USD ($) | |
Income Taxes [Line Items] | ||||
Increase (decrease) in deferred tax assets | $ (4,700) | |||
Increase (decrease) in deferred liabilities | (25,000) | |||
Deferred income taxes | $ (22,442) | (22,442) | $ 8,243 | $ 6,986 |
Interest and penalties included in provision for incomes taxes | 0 | 0 | $ 100 | |
Accrued interest and penalties | 0 | 0 | 300 | |
Unrecognized tax benefits that would impact the effective tax rate if recognized | 300 | 300 | $ 500 | |
Deferred tax assets capital loss carryforward | $ 1,700 | $ 1,700 | ||
Deferred tax assets capital loss carryforward expiration year | 2,019 | |||
Valuation allowance release due to decrease in deferred tax asset, capital loss carryforward | $ 300 | |||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Income tax return examination | In September 2017, the Internal Revenue Service ("IRS") commenced an examination of the Company's 2015 consolidated corporate income tax return. The examination was still in process as of December 30, 2017. As of December 30, 2017, the Company's 2014, and 2016 federal income tax returns remain subject to examination by IRS. The Company's state income tax returns remain subject to examination for three or four years depending on the state's statute of limitations. | |||
Number of states being audited | State | 1 | |||
State and Local Jurisdiction | Minimum | ||||
Income Taxes [Line Items] | ||||
Income tax return examination period | 3 years | |||
State and Local Jurisdiction | Maximum | ||||
Income Taxes [Line Items] | ||||
Income tax return examination period | 4 years |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Schedule of Unrecognized Tax Benefits [Line Items] | ||
Balance at beginning of year | $ 589 | $ 486 |
Increases related to current year tax positions | 64 | 80 |
(Decreases) Increases related to prior year tax positions | (259) | 76 |
Decreases related to settlements | (62) | (50) |
Decreases related to lapse of statute of limitations | (40) | (3) |
Balance at end of year | $ 292 | $ 589 |
Non-cancelable Contractual Obli
Non-cancelable Contractual Obligations (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Schedule Of Contractual Commitments [Line Items] | ||
Contractual obligations payment due, total | $ 216,438 | |
Contractual obligations payment due, 2018 | 136,877 | |
Contractual obligations payment due, 2019 | 23,969 | |
Contractual obligations payment due, 2020 | 12,691 | |
Contractual obligations payment due, 2021 | 12,625 | |
Contractual obligations payment due, 2022 | 10,212 | |
Thereafter | 20,064 | |
Equipment and machinery | ||
Schedule Of Contractual Commitments [Line Items] | ||
Contractual obligations payment due, total | 13,100 | |
Contractual obligations payment due, 2018 | 13,100 | |
Operating Leases | ||
Schedule Of Contractual Commitments [Line Items] | ||
Contractual obligations payment due, total | 12,764 | $ 15,900 |
Contractual obligations payment due, 2018 | 3,119 | |
Contractual obligations payment due, 2019 | 2,844 | |
Contractual obligations payment due, 2020 | 2,515 | |
Contractual obligations payment due, 2021 | 2,571 | |
Contractual obligations payment due, 2022 | 1,715 | |
Brand Support | ||
Schedule Of Contractual Commitments [Line Items] | ||
Contractual obligations payment due, total | 71,822 | |
Contractual obligations payment due, 2018 | 41,647 | |
Contractual obligations payment due, 2019 | 4,657 | |
Contractual obligations payment due, 2020 | 4,383 | |
Contractual obligations payment due, 2021 | 4,335 | |
Contractual obligations payment due, 2022 | 4,200 | |
Thereafter | 12,600 | |
Hops, Barley and Wheat | ||
Schedule Of Contractual Commitments [Line Items] | ||
Contractual obligations payment due, total | 62,197 | |
Contractual obligations payment due, 2018 | 26,979 | |
Contractual obligations payment due, 2019 | 13,927 | |
Contractual obligations payment due, 2020 | 4,615 | |
Contractual obligations payment due, 2021 | 5,386 | |
Contractual obligations payment due, 2022 | 3,964 | |
Thereafter | 7,326 | |
Apples and other ingredients | ||
Schedule Of Contractual Commitments [Line Items] | ||
Contractual obligations payment due, total | 33,716 | |
Contractual obligations payment due, 2018 | 33,716 | |
Glass Bottles | ||
Schedule Of Contractual Commitments [Line Items] | ||
Contractual obligations payment due, total | 13,860 | |
Contractual obligations payment due, 2018 | 13,860 | |
Other Commitments | ||
Schedule Of Contractual Commitments [Line Items] | ||
Contractual obligations payment due, total | 8,979 | |
Contractual obligations payment due, 2018 | 4,456 | |
Contractual obligations payment due, 2019 | 2,541 | |
Contractual obligations payment due, 2020 | 1,178 | |
Contractual obligations payment due, 2021 | 333 | |
Contractual obligations payment due, 2022 | 333 | |
Thereafter | $ 138 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017USD ($)Vendor | Dec. 31, 2016USD ($) | Dec. 26, 2015USD ($) | |
Operating Leases | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Rent expense | $ 3.4 | $ 3.8 | $ 3.4 |
Lease expiration dates | 2,022 | ||
Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Company's current brewing and packaging percentage | 90.00% | ||
Barley and Wheat | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of suppliers | Vendor | 2 | ||
Purchase commitments outstanding | $ 13.7 | ||
Hops | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Purchase commitments | 48.5 | ||
Glass Bottles | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Purchase commitments | $ 13.9 |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 65,637 | $ 91,035 | $ 94,193 | $ 76,402 |
Money market fund | $ 63,800 | $ 90,000 |
Common Stock and Share-Based 57
Common Stock and Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2018 | Jan. 01, 2016 | Jan. 01, 2008 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period - weighted average fair value | $ 72.52 | $ 87.70 | $ 128.54 | ||||
Other than options granted in period | 25,946 | ||||||
Stock option outstanding | 1,156,997 | 1,348,233 | |||||
Exercise Price Per Share | $ 150.10 | ||||||
Estimated forfeiture rate for equity awards that do not vest on January 1st | 5.00% | 5.00% | 5.00% | ||||
Stock-based compensation expense | $ 6,316 | $ 6,148 | $ 6,665 | ||||
Expected dividends | 0.00% | 0.00% | 0.00% | ||||
Total fair value of options vested in period | $ 2,900 | $ 9,900 | $ 4,100 | ||||
Aggregate intrinsic value of stock options exercised in period | 14,900 | $ 52,700 | $ 37,700 | ||||
Unrecognized compensation costs | $ 18,984 | ||||||
Unrecognized compensation costs, weighted average period | 2 years 9 months 3 days | ||||||
Option vested, number of shares | 22,213 | 19,740 | 25,732 | ||||
Option vested, weighted average fair value | $ 151.32 | $ 114.12 | $ 79.44 | ||||
Repurchased shares of Class A Common Stock | 13,447,346 | 12,483,556 | 11,538,680 | 10,921,933 | |||
Repurchased value of Class A Common Stock | $ 752,352 | $ 607,750 | $ 446,092 | $ 307,387 | |||
Performance-Based Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 36 | $ 203 | $ 831 | ||||
Non-Employee Director Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 10,188 | 14,040 | 5,640 | ||||
Common Class A | Non-Employee Director Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for issuance | 600,000 | ||||||
Shares available for grant | 100,000 | ||||||
Maximum | Non-Employee Director Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options, contractual term | 10 years | ||||||
Employee Stock Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Options granted in period | 5,185 | 786,450 | 18,723 | ||||
Employee Stock Compensation Plan | Service-Based Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 173,135 | 3,981 | |||||
Employee Stock Compensation Plan | Performance-Based Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 38,808 | 14,742 | |||||
Employee Stock Compensation Plan | Investment Share Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Payroll deduction period | 11 years | ||||||
Shares employees elected to purchase | 10,146 | 9,199 | 8,301 | ||||
Employee Stock Compensation Plan | Chief Executive Officer | Service-Based Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 574,507 | ||||||
Employee Stock Compensation Plan | Common Class A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for issuance | 6,700,000 | ||||||
Shares available for grant | 700,000 | ||||||
Employee Stock Compensation Plan | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period - weighted average fair value | $ 82.69 | ||||||
Employee Stock Compensation Plan | Subsequent Event | Common Class A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period | 17,531 | ||||||
Employee Stock Compensation Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options, contractual term | 10 years | ||||||
Employee Stock Compensation Plan | Maximum | Investment Share Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Discount from current market value | 40.00% | ||||||
Employee Stock Compensation Plan | Minimum | Investment Share Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requirement tenure of employee for investment share program | 1 year | ||||||
Discount from current market value | 0.00% | ||||||
Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Other than options granted in period | 15,800 | 21,653 | 6,092 | ||||
Restricted Stock Awards | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Other than options granted in period | 18,873 | ||||||
Restricted Stock Awards | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Restricted Stock Awards | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
January 1, 2008 | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Options granted in period | 753,864 | ||||||
Stock option outstanding | 150,773 | 301,546 | |||||
Vesting percentage per year | 20.00% | ||||||
Stock price | $ 42 | ||||||
Exercise Price Per Share | $ 121.10 | $ 99.85 | |||||
Options granted in period, weighted average fair value | 8.41 | ||||||
Stock-based compensation expense | $ 200 | $ 300 | $ 500 | ||||
January 1, 2008 | Maximum | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise Price Per Share | 70 | ||||||
January 1, 2008 | Minimum | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise Price Per Share | $ 37.65 | ||||||
Performance-Based Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option outstanding | 35,885 | ||||||
Service-Based Awards | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option outstanding | 574,507 | ||||||
January 1, 2016 | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Options granted in period | 574,507 | ||||||
Options granted in period - weighted average fair value | $ 39.16 | ||||||
Stock option outstanding | 574,507 | 574,507 | |||||
Vesting percentage per year | 20.00% | ||||||
Stock price | $ 201.91 | ||||||
Option exercised, additional percentage | 1.50% | ||||||
Exercise Price Per Share | $ 272.45 | $ 226.72 | |||||
Estimated forfeiture rate for equity awards that do not vest on January 1st | 100.00% | ||||||
January 1, 2016 | Maximum | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period, weighted average fair value of stock over exercise price | $ 150 | ||||||
January 1, 2016 | Minimum | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise Price Per Share | $ 201.91 | ||||||
Investment Share Program | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares employees elected to purchase | 9,214 |
Summary of Stock Options under
Summary of Stock Options under Employee Equity Incentive Plan and Stock Option Plan for Non-Employee Directors (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 30, 2017USD ($)$ / sharesshares | |
Shares | |
Outstanding at beginning of period | shares | 1,348,233 |
Granted | shares | 15,373 |
Forfeited | shares | (12,208) |
Expired | shares | 0 |
Exercised | shares | (194,401) |
Outstanding at end of period | shares | 1,156,997 |
Exercisable at end of period | shares | 182,242 |
Vested and expected to vest at end of period | shares | 562,478 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ 141.98 |
Granted | $ / shares | 150.10 |
Forfeited | $ / shares | 160.47 |
Expired | $ / shares | 0 |
Exercised | $ / shares | 79.78 |
Outstanding at end of period | $ / shares | 158.53 |
Exercisable at end of period | $ / shares | 98.78 |
Vested and expected to vest at end of period | $ / shares | $ 115.47 |
Weighted-Average Remaining Contractual Term | |
Outstanding at end of period | 6 years 3 months 11 days |
Exercisable at end of period | 3 years 6 months 29 days |
Vested and expected to vest at end of period | 4 years 5 months 27 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 45,877 |
Exercisable at end of period | $ | 17,554 |
Vested and expected to vest at end of period | $ | $ 44,461 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense Included in Operating Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 6,316 | $ 6,148 | $ 6,665 |
Share Based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 6,316 | 6,148 | 6,665 |
Performance-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 36 | 203 | 831 |
Advertising, promotional and selling expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 2,868 | 2,507 | 2,943 |
General and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 3,448 | $ 3,641 | $ 3,722 |
Weighted Average Assumptions us
Weighted Average Assumptions used to Estimate Fair Value of Stock Options (Detail) - Times | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 36.20% | 34.00% | 34.20% |
Risk-free interest rate | 2.30% | 2.16% | 2.16% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Exercise factor | 3.63 | 2.68 | 3 |
Discount for post-vesting restrictions | 0.00% | 0.00% | 0.00% |
Summary of Estimated Future Ann
Summary of Estimated Future Annual Stock-Based Compensation Expense (Detail) $ in Thousands | Dec. 30, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2,018 | $ 5,519 |
2,019 | 4,360 |
2,020 | 3,107 |
2,021 | 2,618 |
2,022 | 1,992 |
Thereafter | 1,388 |
Total | $ 18,984 |
Summary of Vesting Activities f
Summary of Vesting Activities for Investment Share Program and Restricted Stock Awards (Detail) | 12 Months Ended |
Dec. 30, 2017$ / sharesshares | |
Number of shares | |
Non-vested at beginning of period | shares | 64,968 |
Granted | shares | 25,946 |
Vested | shares | (22,213) |
Forfeited | shares | (6,296) |
Non-vested at end of period | shares | 62,405 |
Weighted Average Fair Value | |
Non-vested at beginning of period | $ / shares | $ 166.29 |
Granted | $ / shares | 132.88 |
Vested | $ / shares | 151.32 |
Forfeited | $ / shares | 178.56 |
Non-vested at end of period | $ / shares | $ 155.21 |
Stock Repurchases (Detail)
Stock Repurchases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Number of shares | |||
Repurchased at beginning of period | 12,483,556 | 11,538,680 | 10,921,933 |
Repurchases | 963,790 | 944,876 | 616,747 |
Repurchased at end of period | 13,447,346 | 12,483,556 | 11,538,680 |
Aggregate Purchase Price | |||
Repurchased at beginning balance | $ 607,750 | $ 446,092 | $ 307,387 |
Repurchases | 144,602 | 161,658 | 138,705 |
Repurchased at end of period | $ 752,352 | $ 607,750 | $ 446,092 |
Employee Retirement Plans and64
Employee Retirement Plans and Post-Retirement Benefit Plan - Additional Information (Detail) | 12 Months Ended | ||
Dec. 30, 2017USD ($)hCompensationPlan | Dec. 31, 2016USD ($) | Dec. 26, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unfunded projected pension benefits | $ 2,200,000 | $ 1,900,000 | |
Long-term rate of return assumption | 6.50% | ||
Pension Benefit Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, discount rate | 3.68% | 4.25% | |
Debt Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Securities target allocation | 35.00% | ||
Debt Securities | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assumed average annual returns on assets | 3.00% | ||
Debt Securities | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assumed average annual returns on assets | 6.00% | ||
Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Securities target allocation | 65.00% | ||
Equity Securities | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assumed average annual returns on assets | 8.00% | ||
Equity Securities | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assumed average annual returns on assets | 12.00% | ||
Non-Union Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of retirement plans | CompensationPlan | 1 | ||
Non-Union Plans | Boston Beer 401 (k) Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Eligibility timing | Eligible to participate in the Plan immediately upon employment. | ||
Voluntary contributions of annual compensation | 60.00% | ||
Employer matching contribution percentage | 6.00% | ||
Pension contributions | $ 3,200,000 | $ 3,500,000 | $ 3,000,000 |
Non-Union Plans | Boston Beer 401 (k) Plan | Company's match for the first $1,000 of the eligible participants contribute | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer match percentage | 100.00% | ||
Contribution amount by the company | $ 1,000 | ||
Non-Union Plans | Boston Beer 401 (k) Plan | Company's match thereafter | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer match percentage | 50.00% | ||
Union Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of retirement plans | CompensationPlan | 2 | ||
Union Plans | Company Sponsored Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Eligibility timing | Open to all union employees who are covered by the Company's collective bargaining agreement with Teamsters Local Union No. 1199 ("Local Union #1199"), or persons on leave from the Company who are employed by Local Union #1199, and in either case who have completed 12 consecutive months of employment with at least 750 hours worked. | ||
Pension contributions | $ 238,000 | $ 219,000 | $ 188,000 |
Eligibility period | 12 months | ||
Time required for eligibility | h | 750 | ||
Union Plans | Retiree Medical Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Eligibility period | 20 years | ||
Time required for eligibility | 5 years | ||
Benefit obligation, discount rate | 3.68% | 4.25% | |
Benefit obligation, rate of compensation increase | 2.50% | 2.50% | 2.50% |
Percentage paid for coverage | 100.00% | ||
Union Plans | Retiree Medical Plan | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Voluntarily retirement age | 57 years | ||
Union Plans | Retiree Medical Plan | Local #20 member | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Time required for eligibility | 7 years | ||
Retiree Medical Plan, last years of employment | 10 years | ||
Voluntarily retirement age | 65 years | ||
Union Plans | Retiree Medical Plan | Local #20 member | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Eligibility period | 20 years | ||
Union Plans | Samuel Adams Cincinnati Brewery 401 (k) Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Eligibility timing | All union employees upon commencement of employment or, if later, attaining age 21. | ||
Voluntary contributions of annual compensation | 60.00% |
Funded Status of Local 1199 Pen
Funded Status of Local 1199 Pension Plan and Retiree Medical Plan (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Pension Benefit Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets at end of fiscal year | $ 3,330 | $ 2,733 |
Benefit obligation at end of fiscal year | 5,572 | 4,611 |
Unfunded Status | (2,242) | (1,878) |
Retiree Medical Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation at end of fiscal year | 799 | 708 |
Unfunded Status | $ (799) | $ (708) |
Local 1199 Plan's Weighted-Aver
Local 1199 Plan's Weighted-Average Asset Allocations (Detail) | Dec. 30, 2017 | Dec. 31, 2016 |
Asset Category | ||
Defined Benefit Plan Weighted Average Asset Allocations | 100.00% | 100.00% |
Equity Securities | ||
Asset Category | ||
Defined Benefit Plan Weighted Average Asset Allocations | 67.00% | 66.00% |
Debt Securities | ||
Asset Category | ||
Defined Benefit Plan Weighted Average Asset Allocations | 33.00% | 34.00% |
Computation of Earnings Per Sha
Computation of Earnings Per Share, Basic (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 30, 2017 | [1] | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | [2] | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||
Net income | $ 30,530 | $ 33,683 | $ 29,125 | $ 5,711 | $ 22,166 | $ 31,530 | $ 26,621 | $ 7,032 | $ 99,049 | $ 87,349 | $ 98,414 | |||
Allocation of net income for basic: | ||||||||||||||
Allocation of net income for basic common stock | 99,049 | 87,349 | 98,414 | |||||||||||
Allocation of net income for basic unvested participating shares | $ 544 | $ 442 | $ 462 | |||||||||||
Weighted average number of shares for basic: | ||||||||||||||
Weighted average number of shares for basic unvested participating shares | 67 | 64 | 62 | |||||||||||
Shares used in net income per common share - basic | 12,102 | 12,597 | 13,185 | |||||||||||
Net income per share for basic: | ||||||||||||||
Net income per common share - basic | $ 2.60 | $ 2.82 | $ 2.38 | $ 0.46 | $ 1.77 | $ 2.53 | $ 2.11 | $ 0.55 | $ 8.18 | $ 6.93 | $ 7.46 | |||
Common Class A | ||||||||||||||
Allocation of net income for basic: | ||||||||||||||
Allocation of net income for basic common stock | $ 73,114 | $ 63,717 | $ 71,798 | |||||||||||
Weighted average number of shares for basic: | ||||||||||||||
Weighted-average number of common shares - basic | 8,933 | 9,189 | 9,619 | |||||||||||
Net income per share for basic: | ||||||||||||||
Net income per common share - basic | $ 8.18 | $ 6.93 | $ 7.46 | |||||||||||
Common Class B | ||||||||||||||
Allocation of net income for basic: | ||||||||||||||
Allocation of net income for basic common stock | $ 25,391 | $ 23,190 | $ 26,154 | |||||||||||
Weighted average number of shares for basic: | ||||||||||||||
Weighted-average number of common shares - basic | [3] | 3,102 | 3,344 | 3,504 | ||||||||||
Net income per share for basic: | ||||||||||||||
Net income per common share - basic | $ 8.18 | $ 6.93 | $ 7.46 | |||||||||||
[1] | During the fourth quarter of 2017, the Company recorded a $20.3 million tax benefit due to the Tax Cuts and Jobs Act of 2017. | |||||||||||||
[2] | During the fourth quarter of 2016, the Company recorded a $3.6 million decrease in stock-based compensation expense related to the planned retirement of the Company's Chief Executive Officer in 2018. | |||||||||||||
[3] | Change in Class B Common Stock resulted from the conversion of 125,000 shares to Class A Common Stock on November 4, 2016, 45,000 shares to Class A Common Stock on November 30, 2016, 100,000 shares to Class A Common Stock on March 7, 2017, and 79,000 shares to Class A Common Stock on October 31, 2017 with the ending number of shares reflecting the weighted average for the period. |
Computation of Earnings Per S68
Computation of Earnings Per Share, Basic (Parenthetical) (Detail) - shares | Oct. 31, 2017 | Mar. 07, 2017 | Nov. 30, 2016 | Nov. 04, 2016 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Conversion of Class B Common Stock into Class A Common Stock | 79,000 | 100,000 | 45,000 | 125,000 |
Computation of Diluted Net Inco
Computation of Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 30, 2017 | [1] | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | [2] | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||||||||||||
Allocation of net income for basic common stock | $ 99,049 | $ 87,349 | $ 98,414 | |||||||||||
Earnings to Common Shareholders, Net effect of unvested participating shares | 7 | 9 | 14 | |||||||||||
Earnings to Common Shareholders, Net income per common share - diluted | $ 98,512 | $ 86,916 | $ 97,966 | |||||||||||
Add: effect of dilutive potential common shares Share-based awards | 145 | 263 | 397 | |||||||||||
Weighted-average number of common shares - diluted | 12,180 | 12,796 | 13,520 | |||||||||||
Net income per common share-basic | $ 2.60 | $ 2.82 | $ 2.38 | $ 0.46 | $ 1.77 | $ 2.53 | $ 2.11 | $ 0.55 | $ 8.18 | $ 6.93 | $ 7.46 | |||
Net income per common share-diluted | $ 2.57 | $ 2.78 | $ 2.35 | $ 0.45 | $ 1.75 | $ 2.48 | $ 2.06 | $ 0.53 | $ 8.09 | $ 6.79 | $ 7.25 | |||
Common Class A | ||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||||||||||||
Allocation of net income for basic common stock | $ 73,114 | $ 63,717 | $ 71,798 | |||||||||||
Weighted-average number of common shares - basic | 8,933 | 9,189 | 9,619 | |||||||||||
Net income per common share-basic | $ 8.18 | $ 6.93 | $ 7.46 | |||||||||||
Common Class B | ||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||||||||||||
Allocation of net income for basic common stock | $ 25,391 | $ 23,190 | $ 26,154 | |||||||||||
Earnings to Common Shareholders, Class B Common Stock | $ 25,391 | $ 23,190 | $ 26,154 | |||||||||||
Weighted-average number of common shares - basic | [3] | 3,102 | 3,344 | 3,504 | ||||||||||
Add: effect of dilutive potential common shares, Class B Common Stock | 3,102 | 3,344 | 3,504 | |||||||||||
Net income per common share-basic | $ 8.18 | $ 6.93 | $ 7.46 | |||||||||||
[1] | During the fourth quarter of 2017, the Company recorded a $20.3 million tax benefit due to the Tax Cuts and Jobs Act of 2017. | |||||||||||||
[2] | During the fourth quarter of 2016, the Company recorded a $3.6 million decrease in stock-based compensation expense related to the planned retirement of the Company's Chief Executive Officer in 2018. | |||||||||||||
[3] | Change in Class B Common Stock resulted from the conversion of 125,000 shares to Class A Common Stock on November 4, 2016, 45,000 shares to Class A Common Stock on November 30, 2016, 100,000 shares to Class A Common Stock on March 7, 2017, and 79,000 shares to Class A Common Stock on October 31, 2017 with the ending number of shares reflecting the weighted average for the period. |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 30, 2017shares$ / shares | Sep. 30, 2017$ / shares | Jul. 01, 2017$ / shares | Apr. 01, 2017$ / shares | Dec. 31, 2016$ / shares | [2] | Sep. 24, 2016$ / shares | Jun. 25, 2016$ / shares | Mar. 26, 2016$ / shares | Dec. 30, 2017shares$ / shares | Dec. 31, 2016$ / sharesshares | Dec. 26, 2015$ / sharesshares | ||
Earnings Per Share Note [Line Items] | |||||||||||||
Net income per common share - basic | $ / shares | $ 2.60 | [1] | $ 2.82 | $ 2.38 | $ 0.46 | $ 1.77 | $ 2.53 | $ 2.11 | $ 0.55 | $ 8.18 | $ 6.93 | $ 7.46 | |
Conversion ratio for Class B to Class A shares | 1 | 1 | |||||||||||
Stock options cancelled during the period | 12,208 | ||||||||||||
Common Class A | |||||||||||||
Earnings Per Share Note [Line Items] | |||||||||||||
Net income per common share - basic | $ / shares | $ 8.18 | $ 6.93 | $ 7.46 | ||||||||||
Antidilutive securities excluded from computation of earnings per share | 785,000 | 712,000 | 16,000 | ||||||||||
Common Class A | Performance-Based Awards | |||||||||||||
Earnings Per Share Note [Line Items] | |||||||||||||
Stock options cancelled during the period | 12,000 | ||||||||||||
Common Class A | Performance-Based Awards | |||||||||||||
Earnings Per Share Note [Line Items] | |||||||||||||
Number of shares not included because the performance criteria was not expected to be met | 36,000 | 35,000 | 15,000 | ||||||||||
[1] | During the fourth quarter of 2017, the Company recorded a $20.3 million tax benefit due to the Tax Cuts and Jobs Act of 2017. | ||||||||||||
[2] | During the fourth quarter of 2016, the Company recorded a $3.6 million decrease in stock-based compensation expense related to the planned retirement of the Company's Chief Executive Officer in 2018. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ 446,582 | $ 461,221 | $ 436,140 |
Deferred pension and other post-retirement benefit costs, net of taxes | (170) | 122 | 130 |
Amortization of Deferred benefit costs, net of tax | (32) | (175) | 74 |
Currency translation adjustment | 17 | (99) | (22) |
Balance | 423,523 | 446,582 | 461,221 |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (1,103) | (951) | (1,133) |
Currency translation adjustment | 17 | (99) | (22) |
Balance | $ (1,288) | $ (1,103) | $ (951) |
Changes in Accumulated Other 72
Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Deferred pension and other post-retirement benefit costs, taxes | $ (57) | $ (69) | $ (99) |
Amortization of Deferred benefit costs, tax | $ 11 | $ 101 | $ (43) |
Summary of Valuation and Qualif
Summary of Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 5,200 | ||
Balance at End of Period | 3,000 | $ 5,200 | |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 244 | $ 144 | |
Net Provision (Recovery) | (244) | 165 | |
Amounts Charged Against Reserves | (65) | ||
Balance at End of Period | 244 | ||
Discount Accrual | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 3,078 | 2,813 | 3,006 |
Net Provision (Recovery) | 30,171 | 33,157 | 33,204 |
Amounts Charged Against Reserves | (30,177) | (32,892) | (33,397) |
Balance at End of Period | 3,072 | 3,078 | 2,813 |
Inventory Obsolescence Reserve | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 2,262 | 1,525 | 1,328 |
Net Provision (Recovery) | 5,751 | 4,707 | 4,045 |
Amounts Charged Against Reserves | (6,187) | (3,970) | (3,848) |
Balance at End of Period | 1,826 | 2,262 | 1,525 |
Stale Beer Reserve | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 5,226 | 3,254 | 2,422 |
Net Provision (Recovery) | 5,449 | 10,466 | 7,780 |
Amounts Charged Against Reserves | (7,652) | (8,494) | (6,948) |
Balance at End of Period | $ 3,023 | $ 5,226 | $ 3,254 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - President and Chief Executive Officer - Scenario, Forecast | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Schedule Of Common Share Purchase [Line Items] | |
Base salary | $ 750,000 |
Sign-on bonus | $ 1,600,000 |
Percentage of annual target bonus | 100.00% |
Restricted Stock Awards | |
Schedule Of Common Share Purchase [Line Items] | |
Value of stock options/awards at grant date | $ 14,750,000 |
Performance-Based Stock Option | |
Schedule Of Common Share Purchase [Line Items] | |
Value of stock options/awards at grant date | $ 1,000,000 |
Quarterly Results (Detail)
Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 30, 2017 | [1] | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | [2] | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Quarterly Financial Information [Line Items] | |||||||||||||
Net revenue | $ 206,320 | $ 247,047 | $ 247,930 | $ 161,695 | $ 219,370 | $ 253,433 | $ 244,816 | $ 188,827 | $ 921,736 | $ 968,994 | $ 1,024,040 | ||
Gross profit | 108,037 | 131,501 | 134,019 | 76,344 | 107,656 | 133,607 | 126,876 | 91,531 | 449,901 | 459,670 | 501,617 | ||
Operating income | 14,863 | 51,496 | 45,288 | 4,028 | 34,325 | 50,309 | 41,788 | 11,237 | 115,675 | 137,659 | 156,174 | ||
Net income | $ 30,530 | $ 33,683 | $ 29,125 | $ 5,711 | $ 22,166 | $ 31,530 | $ 26,621 | $ 7,032 | $ 99,049 | $ 87,349 | $ 98,414 | ||
Net income per share-basic | $ 2.60 | $ 2.82 | $ 2.38 | $ 0.46 | $ 1.77 | $ 2.53 | $ 2.11 | $ 0.55 | $ 8.18 | $ 6.93 | $ 7.46 | ||
Net income per share-diluted | $ 2.57 | $ 2.78 | $ 2.35 | $ 0.45 | $ 1.75 | $ 2.48 | $ 2.06 | $ 0.53 | $ 8.09 | $ 6.79 | $ 7.25 | ||
[1] | During the fourth quarter of 2017, the Company recorded a $20.3 million tax benefit due to the Tax Cuts and Jobs Act of 2017. | ||||||||||||
[2] | During the fourth quarter of 2016, the Company recorded a $3.6 million decrease in stock-based compensation expense related to the planned retirement of the Company's Chief Executive Officer in 2018. |
Quarterly Results (Parenthetica
Quarterly Results (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Quarterly Financial Information [Line Items] | |||||
Deferred income taxes | $ (22,442) | $ (22,442) | $ 8,243 | $ 6,986 | |
Planned Retirement of Chief Executive Officer | |||||
Quarterly Financial Information [Line Items] | |||||
Decrease in share-based compensation expense | $ 3,600 |